Boatler Used Cadillac Co. requires $1,010,000 in financing over the next three years. The firm can borrow the funds for three years at 7 percent interest per year. Mr. Boatler decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 3 percent interest in the first year, 5 percent in the second year, and 11 percent interest in the third year. a. Determine the total three-year interest cost under each plan. Total Interest cost Fixed cost financing $ Variable short-term financing $ b. Which plan is less costly? Fixed cost plan Short-term plan