Use the Information to Answer the Following Question(s)

question 56

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 size of the commission Cypress will pay the bank for the banker's acceptance?

• A) $7,000
• B) $5,000
• C) $12,000
• D) $14,000

---

Definitions:

Categorical Imperative

A central philosophical concept in the ethics of Immanuel Kant, stating an action is morally right if it can be universally applied.

Informant

A person who provides information or data, often confidentially, for a particular study or investigation.

Collaborator

A person or organization that works jointly with others towards a common goal, especially in scientific, academic, or creative projects.

Participant

An individual who takes part in a research study or experiment, often providing data or insights.