The managing director of MNO Limited plans to replace the company's equipment. The co and aceountant has provided the following estimates. Assume year-end cash flows for the Question 1 Calculate the optimum time for the equipment to be replaced, assuming the cost of capital to be 20 Required [25 marks] per cent. VWX Limited manufactures three products, X,Y and Z. The present net annual income from these Question 2 is as follower The company is considering whether or not to cease selling product Y. It is felt that selling prices cannot be raised or lowered without adversely affecting net income. GHS5,000 of the fixed costs of product Y are direct fixed costs. Prepare a statement to indicate whether the company should cease production and sale of product Required Y