Please answer the following questions in detail, provide examples whenever applicable, provide in-text citations. Please describe the real option inherent in each of the following cases and provide some real-life hypothetical cases. Also, explain in each case if the option seller is involved and who that seller might be.a. Moda di Milano postpones a major investment. The expansion has positive NPV on a discounted cash-flow basis, but top management wants to get a better fix on product demand before proceeding.b. Western Telecom commits to production of digital switching equipment specially designed for the European market. The project has a negative NPV, but it is justified on strategic grounds by the need for a strong market position in the rapidly growing, and potentially very profitable, market.c. Western Telecom vetoes a fully integrated, automated production line for the new digital switches. It relies on standard, less-expensive equipment. The automated production line is more efficient overall, according to a discounted cash-flow calculation.d. Mount Fuji Airways buys a jumbo jet with special equipment that allows the plane to be switched quickly from freight to passenger use or vice versa. 2. State if each of the following statements is true or false. Justify your answer.Decision trees can help identify and describe real options.The option to expand increases PV.High abandonment value decreases PV.If a project has a positive NPV, the firm should always invest immediately. 3. State if each of the following statements are true or false. Justify your answer.A firm that earns the opportunity cost of capital is earning economic rents.A firm that invests in positive NPV ventures expects to earn economic rents.Financial managers should try to identify areas where their firms can earn economic rents, because they think that positive NPV projects are likely to be found in projects that earn economic rent.Economic rent is the equivalent annual cost of operating capital equipment.

Summary:This document must address all 5 of these areas. This can be in Paragraph format with your explanations or can use bullet points as well. Each part must be turned in separately - one per assignment tab1) What format or type of documentation do you propose? How will it be available?2) What type of testing do you propose? How much time do you propose for testing?3) What is your System Changeover Plan and why it is the best for your project? 4) What type of Training do you propose and why? Vendor Training, Webinar, Tutorials, Outside training, Interactive?5) What type of Maintenance and support are you proposing?Only Microsoft Word doc or PDF files

Given test file as screenshot3)From the test file, open inspector in JASP. An industrial psychologist constructed a test intended to predict the on-the-job success of applicants for the position of inspector. In order to discover how well her test worked, she gave her new test to the first applicants for the job and hired them on probationary status regardless of their test scores. She then counted the number of faulty approvals by each applicant during their first week on the job. Choose the appropriate test statistic. Run the test is JASP. Complete a write-up for your analysis.variablesApplicant - nomial test score - score earned on the test at the time of application for the inspectorfaulty approval - how many mistakes the the application makes in approving faulty products.4)From the test file open course evaluations in JASP.An Introductory Psychology teacher wanted to know the relationship between course grades and course evaluation. He had all students in his Introductory Psychology sections complete a course evaluation. From these evaluations, he randomly selected the course evaluation of 15 students. He correlated their course-evaluation scores with their course grades, letting A = 5, B = 4, C = 3, D = 2, and F = 1. Choose the appropriate test statistic. Run the test is JASP. Complete a write-up for your analysis. variablesstudent - nomial grade - A = 5, B = 4, C = 3, D = 2, and F = 1evaluation - scale 1-10 with 10 being the best and 1 is the worst evaluation