Vincent Black Lightning requires $920,000 in financing over the next three yearsThe firm can borrow the funds for three years percent interest per year Vincent decides to do forecasting and predicts that he utilizes shortterm financing instead, he will pay 3 percent interest in the first year5 percent in the second year, and 11 percent interest in the third year

Vincent Black Lightning requires $920,000 in financing over the next three years. The firm can borrow the funds for three years at 7 percent interest per year Vincent decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 3 percent interest in the first year, 5 percent in the second year, and 11 percent interest in the third year a. Determine the total threeyear interest cost under each plar b. Which plon is less costly? Fixed cost plan Shor-term plan