(Present value of annuity table required)The Cookies Bakery Company managerial accountant considers the purchase of a new convection oven system.A preferred vendor offers two plausible options,the Tech-Smart convection system (TSCS)and the Perfection Convection Solution Series 3 (PCS3).Both convection systems have a useful life of 12 years.The TSCS requires an initial investment of $250,000 whereas the PCS3 requires an initial investment of $330,000.The energy efficient technology of the TSCS is projected to increase total revenue $38,000 annually while the precise production capability of the PCS3 is projected to increase revenue $52,000 annually.The Managerial accountant plans to invest the cash inflow in an annuity yielding 8%.Compare the net present value of each new system and state which investment is more beneficial to Cookies Bakery Company.

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The Answer of (Present value of annuity table required)The Cookies Bakery Company managerial accountant considers the purchase of a new convection oven system.A preferred vendor offers two plausible options,the Tech-Smart convection system (TSCS)and the Perfection Convection Solution Series 3 (PCS3).Both convection systems have a useful life of 12 years.The TSCS requires an initial investment of $250,000 whereas the PCS3 requires an initial investment of $330,000.The energy efficient technology of the TSCS is projected to increase total revenue $38,000 annually while the precise production capability of the PCS3 is projected to increase revenue $52,000 annually.The Managerial accountant plans to invest the cash inflow in an annuity yielding 8%.Compare the net present value of each new system and state which investment is more beneficial to Cookies Bakery Company.

(Present Value of Annuity Table Required)The Cookies Bakery Company Managerial