Determine the total interest cost under each plan, on the problem below.

PROBLEM 6 WORKING CAPITAL MANAGEMENT (10 POINTS) A. Biochemical Corp. requires $550,000 in financing over the next three years. The firm can borrow the funds for three years at 10.6% interest per year. The CEO decides to do a forecast and predicts that if the company utilizes short-term financing instead, they will pay 8.75% interest in the first year, 13.25% interest in the second year, and 10.15% interest in the third year. Required: 1. Determine the total interest cost under each plan