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Does Twin Peaks have the obligation to absorb losses or the right to receive returns from Power Finance? Multiple Choice Yes because Twin Peak is

Does Twin Peaks have the obligation to absorb losses or the right to receive returns from Power Finance?

Multiple Choice

  • Yes because Twin Peak is protected from risk of loss when electricity prices fall.

  • Yes because Twin Peaks will enjoy residual profits from operating while Power Finances equity investors receive the fixed fee.

  • No because Power Finances equity investors receive the fixed fee.

  • No because Twin Peaks will pay a fixed fee to lease the electric generating plant, operate the plant, and sell the electric power in its markets.

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