Taggart Transcontinental Currently Has a Bank Loan Outstanding That Requires

question 11

Multiple Choice

Taggart Transcontinental currently has a bank loan outstanding that requires it to make three annual payments at the end of the next three years of $1,000,000 each.The bank has offered to allow Taggart Transcontinental to skip making the next two payments in lieu of making one large payment at the end of the loan's term in three years.If the interest rate on the loan is 6%,then the final payment that the bank will require to make Taggart Transcontinental indifferent between the two forms of payments is closest to:

• A)$2,673,000.
• B)$3,000,000.
• C)$3,184,000.
• D)$3,375,000.

---

Definitions:

Employee Morale

Refers to the overall attitudes, satisfaction, and outlook of employees towards their work and workplace environment.

Democratic Leader

A leadership style characterized by the involvement of team members in decision-making processes, promoting equality and participation.

Management Traits

Characteristics or qualities that are often seen in successful managers, including leadership, decision-making capabilities, and the ability to motivate and guide teams.

High Concern

A state of heightened focus or worry regarding a particular issue, situation, or matter that requires attention.