You Are the Manager of a U

You are the manager of a U.S. firm that is undertaking a project in Hong Kong that will cost 10,000 Hong Kong dollars (HKD) . The current exchange rate is 7.8068 HKD/U.S. $. If the
Project generates cash flows of 12,000 HKD at the end of a year and the exchange rate at that
Point in time is 7.9192 HKD/U.S. $, what is its HKD rate of return? Round your answer to the
Nearest tenth of a percent.

A) 1.4%
B) 14.0%
C) 21.7%
D) none of the above