ABC private ltd is evaluating two projects of constructing two different luxury apartments in two towns in the state of New York. The initial investments for both projects are $160,000. The required rate of return for these projects is $10%. The following is estimated cash flow for the first 6 years.

Year	Hempstead ($)	Brookhaven ($)
1	40,000	30,000
2	40,000	35,000
3	40,000	35,000
4	40,000	30,000
5	40,000	40,000
6	40,000	51,000

Based on the above information, you are required to make an analysis for the decision of Capital Budgeting based on the following techniques: (a) Net Present Value, NPV (20 marks) (b) Profitability Index, PI (5 marks)