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scoundrel [369]
3 years ago
14

Julie has just retired. her company's retirement program has two options as to how retirement benefits can be received. under th

e first option, julie would receive a lump sum of $138,000 immediately as her full retirement benefit. under the second option, she would receive $25,000 each year for 6 years plus a lump-sum payment of $57,000 at the end of the 6-year period.
Business
1 answer:
abruzzese [7]3 years ago
3 0
<span>Julie will be better off taking the extended payout plan. If she takes the $138,000 immediately, she could, assuming an interest rate of 6%, put it in the bank and have $195,756 at the end of 6 years. If she takes the extended payout, she can put $25,000 in the bank every year for six years, and earn interest for a total of $184,846. After 6 years, she also gets $57,000, for a total of $241,846.</span>
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<span>Negotiation: Early Neutral Case Evaluation
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<span>Form of assisted negotiation. The parties select a neutral third party (generally an expert in the subject matter of the dispute) to evaluate their respective positions. The parties explain their positions to the case evaluator however they wish. The evaluator then assesses the strengths and weaknesses of the parties' positions, and this evaluation forms the basis for negotiating a settlement.
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<span>Negotiation: Mini Trial
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<span>Form of assisted negotiation.

A mini-trial is a private proceeding in which each party's attorney briefly argues the party's case before the other party. Typically, a neutral third party, who acts as an adviser and an expert in the area being disputed, is also present. If the parties fail to reach an agreement, the adviser renders an opinion as to how a court would likely decide the issue. The proceeding assists the parties in determining whether they should negotiate a settlement of the dispute or take it to court.
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</span><span>The simplest form of ADR is negotiation, a process in which the parties attempt to settle their dispute informally with or without attorneys to represent them. Attorneys frequently advise their clients to negotiate a settlement voluntarily before they proceed to trial. Parties may even try to negotiate a settlement during a trial or after the trial but before an appeal.


</span><span>Negotiation: Facilitation

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<span>Form of assisted negotiation. Disputes may also be resolved in a friendly, non-adversarial manner through facilitation, in which a third party assists disputing parties in reconciling their differences. The facilitator helps to schedule negotiating sessions and carries offers back and forth between the parties when they refuse to face each other in direct negotiations. Technically, facilitators are not to recommend solutions. (In practice, however, they often do.) In contrast, a mediator is expected to propose solutions.</span>





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