Skysong Company is constructing a building. Construction began on February 1 and was completed on December 31 . Expenditures were $1.2 million on March 1, $0.9 million on June 1, and $4 million on December 31 . Skysong Company borrowed $1.0 million on March 1 on a five-year, 12% note to help finance the building construction. In addition, the company had outstanding all year a $3 million, five-year, 13% note payable and a $3.4-million, four-year, 16% note payable. (a1) Calculate the company's avoidable borrowing costs assuming Skysong follows IFRS. (Do not round intermediate calculations. Round capitalization rate to 2 decimal places, e.g. 52.75% and final answer to 0 decimal places, eg. 5.275.) Avoidable borrowing costs $