Biochemical Corp. requires $640,000 in financing over the next three years. The company can borrow the funds for three years at 10.60 percent annual interest. The CEO decides to make a forecast and predicts that if he uses short-term financing, he will pay 8.75 percent interest in the first year, 13.25 percent interest in the second year, and 10,000 interest. 15 percent in the third year.

 (a) Determine the total interest cost under each plan. (Omit the "$" sign in your answer.) The interest cost Fixed cost financing $ Variable short-term financing $

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