The Biratnagar field office of the Mathema Corporation has sold a quantity of silver ingots for Rs 2.5 million. Mathema wants to transfer this amount to its concentration bank in Kathmandu as…

The Biratnagar field office of the Mathema Corporation has sold a quantity of silver ingots for Rs 2.5 million. Mathema wants to transfer this amount to its concentration bank in Kathmandu as economically as possible. Two means of transfer are being considered. (1) A mail depository transfer check (DTC) which costs Rs 2,000 and takes three days. (2) A wire transfer, which costs Rs 5,000 and for which funds are immediately available in Kathmandu. a. Mathema earns 12 percent annual interest on funds in its concentration bank. Which transfer method should Mathema use to minimize the total cost of the transfer? b. At what rupee transfer amount would Mathema be indifferent to the two transfer procedures?