Negotiators Who Set Their Sights Too Low Are

question 25

Multiple Choice

Negotiators who set their sights too low are:

• A) most likely to achieve an agreement that is optimal
• B) more likely to result in stalemate
• C) almost guaranteed to reach an agreement that is suboptimal
• D) more likely to walk away from the negotiation with no outcome whatsoever
• E) end the negotiation in frustration

---

Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.

Discount Rate

The interest rate used to discount future cash flows to their present value, often reflecting the risk or cost of capital.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Hurdle Rate

The minimum rate of return on an investment that a company or investor expects to earn, used as a benchmark for funding projects.