Modeling Exercise: Capital BudgetingInstructionsA capital budgeting problem occurs when a firm is forced to take only a portion of thepositive NPV projects available to it$.$ Our firm has $15$ investment opportunities and mustchoose between them with limited resources available. See Attachment #$1.$The goal of this capital budgeting exercise is to choose the optimal mix of projects thatmaximizes total NPV of the firm while adhering to the following constraints:$$ Projects #$1$ and #$2$ are mutually exclusive.$$ Projects #$6$ and #$7$ are mutually exclusive and one must be chosen.$$ If projects #$8$ and #$9$ are both chosen, then time $0$ investment is reduced by$$50(000).$ Total number of people available is $30.$ Total cash available in time $0$ is $$5,000(000).$Also, use the following assumptions:$$ Use the Capital Asset Pricing Model to determine the appropriate discount ratesfor the individual projects.$-$ risk free rate is $3\mathrm{.}5\%-$ expected market risk premium is $5\mathrm{.}5\%$Cases to $$Solve$$Case A: Determine the optimal project mix with $30$ people and $$5,000$ available.Case B: Determine the optimal project mix with $30$ people and $$5,500$ available.Case C: Determine the optimal project mix with $30$ people and $$6,000$ available.Case D: Determine the optimal project mix with $30$ people and $$6,500$ available.Case E: Determine the optimal project mix with $30$ people and $$6,600$ available.Case F: Determine the optimal project mix with $31$ people and $$6,600$ available.Case G: Determine the optimal project mix with $32$ people and $$6,600$ available.Case H: Determine the optimal project mix with $33$ people and $$6,600$ available.Case I: Determine the optimal project mix with $34$ people and $$6,600$ available.Note: For each case A$-$G and I, start with all indicators set to $1.[1,1,1,1,....\mathrm{.}1]$ For case H$,$ startwith all indicators set to $1$ except for Project #$1.[0,1,1,1..\mathrm{.}1]$Analysis Questions$1.)$ Given the constraints listed, what is the maximum total NPV the company couldachieve if there were not any people or budgetary constraints?$2.)$ Explain what is happening in cases A through I. What would you recommend to thefirm$$s CEO concerning the sensitivity of all constraints?$3.)$ How would you improve this analysis? $($What would you add to this spreadsheet interms of additional information or additional analysis?$)$