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