Question: i) Old Town company is considering a project. It expects to sell 1,900 units, 4 percent. The expected variable cost per unit is $230 and

i) Old Town company is considering a project. It expects to

i) Old Town company is considering a project. It expects to sell 1,900 units, 4 percent. The expected variable cost per unit is $230 and the expected fixed costs are $420,000. Cost estimates are considered accurate within a 1 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, 2 percent. The tax rate is 21 percent. What is the net income and OCF under the worst-case scenario? (You have to create the scenario summary table) (20 pts) ii) You have a $15,000 portfolio that is invested in Stocks A and B.$6,000 is invested in Stock A and the rest is invested in stock B. Stock A has a beta of 1.63 and Stock B has a beta of .95. What is the portfolio beta? (10 pts)

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