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answer part A and B Mauna Loa Macadamia. Mauna Loa Macadamia, a...

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Finance

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Mauna Loa Macadamia. Mauna Loa Macadamia, a macadamia nut subsidiary of Horsheys with plantations on the slopes of its namesaker volcane in Filo, Hassai, enports macadamia nuta equivalent to \$16,859,504. Saten are rolatively bqually distributed throughout the year. They show up as a Y42,500,000 account rocoivablo on Mauna Loo's bolance sheot Credt forms to each customer allow for 60 days belore payment is doe. Monthly cash collections are typically 7170,000,000. Maune Loa would like to hedge ts yen mheeiptr. but it has too maty cirtomers and transactions to make it practical to solt each rocelvable forward, tt does not want to use opbons because they are considered to be too expersiwn for this particular purpose. Therefort, they have decided to ube a "matching" hedge by borrowing yon. Assume the anmual interest rate on the loan is 3.50%. How much should Mauna Loa borrow in U.S, dollars? b. What shauld be the terms of peyment on the yen loan? a. How much should Mauna Loa borrow in U.S. dollars? (Round to the noarest dolar)

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