Clean Energy Inc. has a planning horizon of 3 years and has 5 potential projects. Each year, the outlay required by each project is known. The amount available for investment in any of these projects each year is also assumed to be known. Each project has an associated expected contribution to total sales whose net present value is also assumed to be known. Determine the project/s that should be undertaken so as to maximize the total net present value of sales subject to budget constraints of each year.

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The Answer of Clean Energy Inc. has a planning horizon of 3 years and has 5 potential projects. Each year, the outlay required by each project is known. The amount available for investment in any of these projects each year is also assumed to be known. Each project has an associated expected contribution to total sales whose net present value is also assumed to be known. Determine the project/s that should be undertaken so as to maximize the total net present value of sales subject to budget constraints of each year.