Question 3 Shally delivers products to customers through delivery vans. The cost of the delivery vans is now significant and management is trying to determine the optimal replacement policy for the delivery vans. The total purchase price of the delivery vans is GHS220,000. The running costs for each year and the scrap values of the delivery vans at the end of each year are: Year 1 GHS 110,000 121,000 2 GHS 132,000 88,000 Running costs Scrap value 3 GHS 154,000 66,000 GHS 165,000 55,000 GHS 176,000 25,000 The company's cost of capital is 12% per annum Ignore tax and inflation Required Advise management on the best time to replace the delivery vans from a financial viewpoint