Loren Press has two printing presses that operate as separate divisions, one located in Durham, North Carolina, and the other in Nyon, Switzerland. The following information is available for 2007. The required rate of return on investments (calculated in U.S. dollars) is 15%.

Both investments were made on December 31, 2006. The exchange rate at the time of Loren's investment in Switzerland on December 31, 2006, was 1.15 Swiss francs = $1. During 2007, the Swiss franc declined steadily in value, reaching an exchange rate on December 31, 2007, of 1.45 Swiss francs = $1. The average exchange rate during 2007 is [(1.15 + 1.45) ( 2] = 1.30 Swiss francs = $1.
Required
1. (a) Calculate Durham Division's ROI for 2007.
(b) Calculate Nyon Division's ROI for 2007 in Swiss francs.
(c) Which division earned a better ROI in 2007? Explain.
2. Top management wants to compare the performance of the two divisions using Rl. Which division do you think had the better Rl performance? Explain your answer.

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Durham Division 765,000 $4,500,000 Nyon Division 1,040,000 Swiss francs 5,750,000 Swiss francs Operating income Total assets