Advocates of financial modeling of product design projects argue that: Multiple Choice financial analysis focuses on measurable quantities only. financial analysis brings discipline and control to the product development process. sufficiently rigorous financial analysis can accurately forecast the product's profit potential. financial analysis is as solid as the assumptions that go into the model. financial analysis nurtures innovation and creativity.

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.