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1. Estimate discount rates for the project using Lessard method. Use data given below. 2. Compute NPVs using the discount rate from #1. *Please use

1. Estimate discount rates for the project using Lessard method. Use data given below. 2. Compute NPVs using the discount rate from #1.

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*Please use this formula:

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Financial Information: Risk-free rate World market risk premium Argentina's yield spread Oil industry beta Argentina's beta Argentina's stock market volatility World stock market volatility Correlation between Argentina's stock market and bond market 4.40% 5.00% 5.00% 0.603 1.10 40.60% 14.71% 0.35

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