Selecting Kanton Company's Financing Strategy and Unsecured Short-Term Borrowing Arrangement Morton Mercado, the CFO of Kanton Company, carefully developed the estimates of the firm's total funds requirements for the coming year. These are shown in the following table. In addition, Morton expects short-term financing costs of about 10.0% and long-term financing costs of about 14.0% during that period. He developed the three a. Determine the total annual cost of each of the three possible financing strategies. Strategy 1-Aggressive: The amounts required are $2, 500,000 short-term and $1,000,000 long-term. The cost of this financing will be $ (Round to the nearest dollar.)