Boatler Used Cadillac Co. requires $850,000 in financing over the next three years. The firm can borrow the funds for two years at 8 percent interest per year. Mr. Boatler decides to do forecasting and predicts that if he utilizes short-term financing instead, he will pay 4 percent interest in the first year, 7 percent in the second year, and 12 percent interest in the third year. Determine the total three-year interest cost under each plan. Which plan is less costly?