Question

Lantau Beer​ (B): Japanese Yen Debt. Lantau Beer of Hong Kong borrowed Japanese yen under a​...

Lantau Beer​ (B): Japanese Yen Debt. Lantau Beer of Hong Kong borrowed Japanese yen under a​ long-term loan agreement several years ago. The​ company's new CFO​ believes, however, that what was originally thought to have been relatively​ "cheap debt" is no longer true. What do you​ think?  ​(Click on the icon to import the table into a​ spreadsheet.)

Calculate the necessary variables for the analysis​ below:  ​(Round to the nearest​ integer.)

2010 2011 2012
Annual yen payments on debt agreement (¥) 12200000 12200000 12200000
Average exchange rate, ¥/HK$ 12.51 12.45 11.02
Annual yen debt service, HK$

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