Resonant Holdings owns a commercial shipping fleet and is in the process of refitting a container ship that was bought from a previous owner. They took ownership on 1 June 2020 and anticipate that it will take twelve months to complete the refurbishment at a total cost of R15 million. One third of the project cost is to be financed by a specific loan at an interest rate of 6.5% and the balance will be financed from two general sources, namely debentures worth R10 million at an interest rate of 7.25% and a revolving loan costing 7%, also worth R10 million. The company expects to make three payments to the ship builders during the year as follows: 

R4 000 000 on 1 June 2020 

R5 000 000 on 1 October 2020 

A final payment of 

R6 000 000 on 1 April 2021 

Required: 

Calculate the borrowing costs that Resonant Holdings will capitalise for the year ended 31 May 2021. (14)