1 Boatler Used Cadillac Co requires $800,000 in financing over the next two years The firm can borrow the funds for two years at 9 percent interest per year Mr Boatler decides to do forecasting and predicts that if he utilizes short term financing instead, he will pay 6 75 interest in the first year and 10 55 interest in the second year Determine the total two year interest cost under each plan Which plan is less costly (6 points) A Cost of Two Year Fixed Cost Financing B Cost of Two Year Variable Short term Financing I Boatler Used Cadillac should use because it is less costly

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1  Boatler Used Cadillac Co  requires $800,000 in financing over the next two years  The firm can borrow the funds for two years at 9 percent interest per year  Mr  Boatler decides to do forecasting and predicts that if he utilizes short term financing instead, he will pay 6 75  interest in the first year and 10 55  interest in the second year  Determine the total two year interest cost under each plan  Which plan is less costly  (6 points) A  Cost of Two Year Fixed Cost Financing B  Cost of Two Year Variable Short term Financing I Boatler Used Cadillac should use because it is less costly

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1. Boatler Used Cadillac Co. requires $800,000 in financing over the next two years. The firm can borrow the funds for two years at 9

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