Question: Two schemes: X & Y were offered to Eric. Scheme X demands an initial investment of $10K and a $3K yearly benefit. While Scheme Y

Two schemes: X & Y were offered to Eric. Scheme X demands an initial investment of $10K and a $3K yearly benefit. While Scheme Y asks for an initial investment of $12K and a $3.5K yearly benefit. Based on the discounted payback period and 10% interest rate, what scheme would Eric choose? Please show all work.

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