Mauna Loa, a macadamia nut subsidiary of Hershey's with planations 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 customers of 1,200,000,000. At the present exchange rate of 128.3/$. Sales are relatively equally distributed during the year. They show up as a 250,00,000 account receivable on Mauna Loas balance sheet. Credit terms to each customer allow for 60 days before payment is due. Monthly cash collections are typically 100,000,000.

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 considered to be too expensive for this particular purpose. Therefore, they have decided to use a matching hedge by borrowing yen. They are able to get such a loan at 4.13% annual interest.

How much in Yen should the company Barrow?

NOTE: ANSWER WITH TWO DECIMALS PLACES