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

---

Definitions:

Peripheral Pulse

The pulse felt at points on the body where arteries are close to the skin, such as the wrist or neck, indicative of the heartbeat and blood circulation efficiency.

Manual Blood Pressure

The measurement of blood pressure using a cuff, sphygmomanometer, and stethoscope, typically performed by a healthcare professional.

Petechiae

Tiny, round spots that appear on the skin as a result of bleeding under the skin.

Pinpoint-sized

Extremely small, as in the size of a pin's point, usually used to describe something very tiny in diameter.