Part B: Advanced techniques in Investment decision $-$ Real Option Analysis Chemis Pharmaceutical Incorporation $($CPI$)$ is a medium$-$sized pharmaceutical supplier for Australasian region. CPI has just attained a $15-$year exclusive right to launch a new nasal spray which helps with clogged nose faster than any other ones available in the over$-$the$-$counter market $($assumed no rivals or substitutions for a foreseeable future$)$ called $$Ouvertin$.$ With the co$-$operations of the marketing$/$production$/$financial teams of CPI, the estimated average cash flows for launching $$Ouvertin$$ emerge as follows: Half$-$year Cash flows $0-10000000120000023000003360000440000056000006800000710000008100000091200000101200000111400000121600000131600000141200000151000000161000000171000000181000000191000000201000000211000000228000002380000024600000256000002660000027400000284000002940000030400000$ The product is within the same line of CPI existing business while its cost of capital is $11\mathrm{.}5\%$ per year. In addition, launching Ouvertin will not alter the company$$s cost of capital. The launching of Ouvertin will cost $$10$ million at any point in time during the next fifteen years and is fixed $($at $$10$ million$).$ The $15-$year government bond YTM is observed as $3\mathrm{.}5\%$ per year in the government bond market. The pharmaceutical product market is quite volatile in its nature. The six$-$month stock return variance on this industry$$s stock portfolio in the relevant markets is estimated as $21\%.$ For simplicity, let$$s assume that the rate of decay on the product launching project is constant through time. Questions: $1.$ Should CPI should go ahead with the launching of the new product $-$ Ouvertin? Provide a numerical justification in the context of $$real option analysis$.$ The use of Black and Scholes model in Excel $($submitted separately$)$ to justify your numbers is also required Note: $-$ Assume e $=2\mathrm{.}718$ as we always do in class and lecture note.