Boatler Used Cadillac Co requires $970,000 in financing over the next three years. The firm can borrow the funds for three years at 8 percent interest per year. Mr. Boatler decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 4 percent interest in the first year, 7 percent in the second year, and 12 percent interest in the third year. a. Determine the total three-year interest cost under each plan Fixed cost financing Variable short-term financing Total Interest cost 5 5 b. Which plan is less costly? O Fixed cost plan O Short-term plan