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?

2010 2011 2012 Annual yen payments on debt agreement () 12,000,000 12,000,000 12,000,000 Average exchange rate, /HK$ 12.28 12.07 11.35 Annual yen debt service, HK$

Analysis of Japanese yen-Denominated Debt	2010	2011	2012
Annual yen payments on debt agreement (Yen)	12,000,000	12,000,000	12,000,000
Average exchange rate, Yen/HK$	12.28	12.07	11.35
Annual yen debt service, HK$	?	?	?