Use the Information to Answer the Following Question(s)

question 72

Multiple Choice

Use the information to answer the following question(s) .
Cypress Systems Inc., of Florida, agrees to sell specialized hydroponic growing equipment to Landcaster's of Australia. Because the two companies have never done business with each other, Cypress requires a banker's acceptance as payment for the $1,000,000 order. The banker's acceptance carries a 1.4% commission per annum and payment is to be received in 6 months. If Cypress Inc. chooses to discount or sell the banker's acceptance to its bank, the discount rate is 1.00% per annum.
-Refer to Instruction 16.1. What is the total Cypress can expect to receive if the firm takes payment today?

• A) $993,000
• B) $995,000
• C) $988,000
• D) $996,000

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Definitions:

Soma

The cell body of a neuron, containing the nucleus and metabolic machinery necessary for neural functions.

Axon

A long, slender projection of a neuron that conducts electrical impulses away from the neuron's cell body toward other neurons or muscles.

Soma

The cell body of a neuron, containing the nucleus and metabolic machinery necessary for maintaining cell functions.

Soma

In biology, refers to the body of an organism, distinguishing from its germ cells or psyche. In literature, may refer to a narcotic substance used to induce euphoria or oblivion.