Completion test

Definition:

A test of the project's ability to perform as planned and generate the expected cash flows. After the completion test, the project can move from recourse to project financing.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Cost of limited partner capital

The discount rate that equates the after-tax inflows with outflows for capital raised from limited partners.

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