What Effect Does Making Concessions Have on Negotiations

question 115

Multiple Choice

What effect does making concessions have on negotiations?

• A) Concessions enable the parties to move towards the area of potential agreement.
• B) Concessions symbolize each party's motivation to negotiate in good faith.
• C) Concessions communicate to the other party the relative importance of negotiating items.
• D) Concessions have all of these effects on negotiations.
• E) Concessions have none of these effects on negotiations.

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Definitions:

Internal Rate

Often referred to as the Internal Rate of Return (IRR), it is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.