6. Use will also be made of some equipment the company already owns. This equipment is fully depreciated for tax purposes but could be sold today for 0.45 million. If used in the manufacture of the product it is not expected to have any value at the end of the six year period. Will you include this item in your NPV calculation? If so how much and in which year? 7. The production facility will be located in one of the company's factories that is not being fully utilised. The company has no alternative uses available for this space, but it could be rented out to another manufacturer who is short of space for 80,000 per year. The product will be charged 50,000 per annum for the space it utilises through the company's management accounting system. Will you include this item in your NPV calculation? If so how much and in which year? Calculate? 8. Each product sold by the company is also allocated by the company's accountant an overhead charge of 10 per cent of the revenues it generates to cover head office expenses. Will you include this item in your NPV calculation? Calculate for year 2012 9. The materials required for production are expected to be 6 per unit. Will you include this item in your NPV calculation? Calculate for year 2012 10. The company will need to hold stocks at the start of each year equivalent in value to 20 per cent of the sales expected in the next year. The company requires a rate of return of 14 per cent on investments of this nature, and the tax rate is 30 per cent. Will you include this item in your NPV calculation? If yes, how much? Calculate for year 2012