A real-estate development firm is considering five development projects over a 3-year planninghorizon. If a project is selected, it has to continue executing during the three years. The fol-lowing table shows the estimated long-run profit (net present value) that each project wouldgenerate at the end of the planning horizon, as well as the yearly expenditures to undertake theprojects, in millions of USD1:Development project(numbers are in millions)12345Expenditures year 1$6$12$10$4$8Expenditures year 2$1$7$9$4$6Expenditures year 3$8$10$2$1$10Estimated profit$1 $1.8 $1.6 $0.8 $1.4Also, project 1 requires that project 5 is selected too, i. e., project 5 can be selected withoutproject 1, but the project 1 cannot be selected without the project 5.The owners of the firm have projected that the available funds are $20 million for year 1,$25 million for year 2, and $25 million for year 3. The firm wants to select the combination ofprojects that will maximize their total estimated long-run profit within the available funds.1. Formulate a mathematical model for this problem utilizing the 5-steps process discussedin class (50 points).1Modified version of problem 7.5 of the textbook: Hillier, F. S., & Hillier, M. S. (2019).Introduction toManagement Science, Edition 6e. New York, NY: McGraw-Hill Education. ISBN: 978-1-259-91892-6Jose L. Ruiz Duarte, 2021Page 1 BUS2 194B - Business AnalyticsModule 3 - Discrete Optimization2. Solve this problem utilizing Excel solver and provide the appropriate recommendationsand expected profits (50 points).3. (Bonus question) Briefly discuss the implications of the solution of this problem underasustainable operationsapproach. Specifically, discuss how these decisions would havethe following impact (5bonuspoints):a) economical impactb) environmental impactc) social impact