B4 (Cost of wire transfer versus paper check) If you send money to firm headquarters with a wire transfer, it costs a fixed $15 and there is no float. On the other hand, if you cut a check and mail it, the fixed cost if only a $1.50 and the transfer of funds will occur in five days (due to mail times, processing times and clearing times). The opportunity cost of funds is 8% per year.

A.What are the cost of a wire transfer and cost of a paper check if the amount being forwarded to headquarters is $10,000?

B.What are the cost of a wire transfer and cost of a paper check if the amount being forwarded to headquarters is $30,000?

C.What is the breakeven point between and wire transfer and a paper check?