1. How does the capitalization rate used to calculate the terminal sale price affect a project's net present value, internal rate of return, or modified internal rate of return ?

2. If the market cap rate for a hotel is 10%, and the sale price of the hotel is $600,000, what was its training twelve months'cash flow ? What would the cash flow have been if the market cap rate were 20%?

3. Explain how the timing of a stream of cash flows can affect the internal rate of return of an investment