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.

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Definitions:

Particular Task

A specific duty or responsibility assigned to someone as part of their job or role.

Situational Leadership Theory

A leadership model proposed by Hersey and Blanchard which suggests that the most effective leadership style varies with the readiness or development level of the followers.

Consideration Concerns

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Structure Concerns

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