Desperate Housewives Tom and Lynette Scavo are thinking of purchasing a new minivan for their family. The minivan is loaded with options and will cost $40,000 with an expected useful life of eight years. The cost of capital will be 8%. Tom and Lynette's financial advisor estimated by purchasing the car, the Scavos will save the following on car insurance, gas, maintenance costs, and other intangibles per year: $3,500, $4,500, $5,500, $4,000, $4,500, $3,000, $3,700, and $5,600 for years one through eight respectively. Calculate: Annual depreciation expense Annual cash inflows Average Rate of Return Average Payback Period Actual Payback Period Net Present Value Benefit/Cost Ratio Internal Rate of Return (< = > than 8%) Based on these answers, would you accept or decline?