Using Exhibit 12 & information in the case on valuation find the following based on the dates given: Jan-93 Jan-96 A. Dow's Discount Rate for evaluating similar U.S. Projects B. Risk Premium for Argentine Projects relative to U.S. Projects C. Dow's Discount Rate for Argentine Projects (C = A +B) 204-021 -28- Exhibit 12 Argentine Risk Premium-EMBI Index, January 1990 to December 1995 Evolution of US and Argentine Yields and Argentine Country Risk Premium 4,500 4,000 Tequila Effect 3,500 Stabilization Program implemented together with the Convertibility Plan 3,000 2,500 The Fed starts raising short term interest rates Basis Points 2,000 1,500 1,000 500 0 Jan-90 Jul-90 Jan-91 Jul-91 Jan-92 Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 -US Yield -Arg. Yield --Country Risk Source: Ariel Grignafini (HBS MBA '05). Using Exhibit 12 & information in the case on valuation find the following based on the dates given: Jan-93 Jan-96 A. Dow's Discount Rate for evaluating similar U.S. Projects B. Risk Premium for Argentine Projects relative to U.S. Projects C. Dow's Discount Rate for Argentine Projects (C = A +B) 204-021 -28- Exhibit 12 Argentine Risk Premium-EMBI Index, January 1990 to December 1995 Evolution of US and Argentine Yields and Argentine Country Risk Premium 4,500 4,000 Tequila Effect 3,500 Stabilization Program implemented together with the Convertibility Plan 3,000 2,500 The Fed starts raising short term interest rates Basis Points 2,000 1,500 1,000 500 0 Jan-90 Jul-90 Jan-91 Jul-91 Jan-92 Jul-92 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 -US Yield -Arg. Yield --Country Risk Source: Ariel Grignafini (HBS MBA '05)