Peggy Fischer wants to collect the $5 million pledge from Peter Smith since he recently backed out of the pledge and MCA is currently in a poor financial position. It is obvious that Peter will not pay the whole pledged amount of $5 million, and the challenge is to find out what he is comfortable donating to MCA. Peggy must determine the amount of pledge she feels comfortable with in order to keep the building construction on schedule. Peggy’s resistance point (pg. 29 in book) is not making a deal with Peter and having the board take him to court because this would it would be personally embarrassing to Peggy and would not bring good publicity to MCA. Peggy’s best alternative to a negotiated agreement should be a little less than half
