Question: Formulate the mathematical program model for selecting among three projects described below, using maximizing the sum of NPV's of the projects selected as the

Formulate the mathematical program model for selecting among three projects described below, using maximizing the sum of NPV's of the projects selected as the objective function. MARR = 8 %. There is a budget constraint of $ 13000 at time 0, and the projects are required to generate $ 3500 at t = 1 and $ 1200 at t = 2 (ATTENTION: This is different from the budget constraint as we discussed in class. Think about it what is a reasonable math representation of this?). The life of each project is 5 years. The projects are independent except that C cannot be selected unless A is also selected. No fractional funding is allowed. What is the value of extra budget money at t = 2? Project A B C Investment $ 5000 $ 7000 $ 8500 Annual cash flow $ 1319 $ 1942 $ 2300

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