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.)

	2010	2011	2012
Annual yen payments on debt agreement ()	11,200,000	11,200,000	11,200,000
Average exchange rate, /HK$	12.71	11.99	11.07
Annual yen debt service, HK$

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Part 1

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

Analysis of Japanese yen-Denominated Debt	2010
Annual yen payments on debt agreement ()	11,200,000
Average exchange rate, /HK$	12.71
Annual yen debt service, HK$