The ceo of dave's firm just came back from a business seminar. he called dave into his office and stated, "i just found out about the product life cycle curve in a strategy seminar. this is a great tool. i want you to drop whatever you're doing and inventory all of our products to determine exactly where they are in the product life cycle." dave needs to think fast for a good answer because he knows that.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan