Using the information from Exhibit 12 please list the answer to the following questions:

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. Dows discount rate for argentine projects (C=A+B) ________. _________

204-021 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 V 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). 204-021 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 V 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)