=+20-30 K ROI, RI and multinational firms OBJECTIVES 3, 4, 7 Normandy Ltd has a division in Australia and another in Malaysia. The investment in the Malaysian assets was made when the exchange rate was AUD $0.30 per ringgit. The average exchange rate for the year was AUD $0.35 per ringgit. The exchange rate at the end of the financial year was AUD $0.38 per ringgit. Income and investment for the two divisions are:

Australia Malaysia Investment in assets $3 490 000 2 400 000 ringgits Income for current year $383 900 266 400 ringgits Required 1 The required return for Normandy is 8%. Calculate the ROI and RI for the two divisions. For the Malaysian division, calculate these measures using both dollars and ringgits. Which division is doing better?