USING EXCEL,

Vincent Black Lightning requires $880,000 in financing over the next three years. The firm can borrow the funds for three years at 8 percent interest per year. Vincent 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. a. Determine the total three-year interest cost under each plan. b. Which plan is less costly? Fixed cost plan Short-term plan