Boats R Us requires $800,000 in financing over the next 2 years. the firm can borrow the funds for 2 years at 12% interest per year. the owner, Boaty McBoaterson decides to do forecasting and predicts that if he utilizes short term financing instead, he will pay 7.00% interest the first year and 13.95% interest the second year

Boats R Us requires 5800,000 in financing over the next 2 years. The firm can borrow the funds for 2 years at 12% interest per year. The owner, Boaty McBoaterson, decides to do forecasting and predicts that if he utilizes short term financing instead, he will pay 7.00% interest the first year, and 13.9596 interest the second year. Determine the total 2-year interest cost under each plan. Which plan is less costly