Last edit was seconds ago 11 lile 2 1 3 These problems are available in MyFinanceLab. 12.1 Mauna Loa Macadamia. Mauna Loa Macadamia, a macadamia nut subsidiary of Hershey's with plan- tations on the slopes of its namesake volcano in Hilo, Hawaii, exports macadamia nuts worldwide. The Japanese market is its biggest export market, with average annual sales invoiced in yen to Japanese cus- tomers of 1,200,000,000. At the present exchange rate of V125/$, this is equivalent to $9,600,000. Sales are relatively equally distributed throughout the year. They show up as a 250,00,000 account receivable on Mauna Loa's balance sheet. Credit terms to each customer allow for 60 days before payment is due. Monthly cash collections are typically V100,000,000 Mauna Loa would like to hedge its yen receipts, but it has too many customers and transactions to make it practical to sell each receivable forward. It does not want to use options because they are consid ered to be too expensive for this particular purpose. Therefore, they have decided to use a "matching hedge by borrowing yen. a. How much should Mauna Loa borrow in yen? b. What should be the terms of payment on the yen loan? 12.2 Acua Leather Goods. DeMagistris Fashion Com- Last edit was seconds ago 11 lile 2 1 3 These problems are available in MyFinanceLab. 12.1 Mauna Loa Macadamia. Mauna Loa Macadamia, a macadamia nut subsidiary of Hershey's with plan- tations on the slopes of its namesake volcano in Hilo, Hawaii, exports macadamia nuts worldwide. The Japanese market is its biggest export market, with average annual sales invoiced in yen to Japanese cus- tomers of 1,200,000,000. At the present exchange rate of V125/$, this is equivalent to $9,600,000. Sales are relatively equally distributed throughout the year. They show up as a 250,00,000 account receivable on Mauna Loa's balance sheet. Credit terms to each customer allow for 60 days before payment is due. Monthly cash collections are typically V100,000,000 Mauna Loa would like to hedge its yen receipts, but it has too many customers and transactions to make it practical to sell each receivable forward. It does not want to use options because they are consid ered to be too expensive for this particular purpose. Therefore, they have decided to use a "matching hedge by borrowing yen. a. How much should Mauna Loa borrow in yen? b. What should be the terms of payment on the yen loan? 12.2 Acua Leather Goods. DeMagistris Fashion Com