E23-29 (similar to) The Grandland Corporation manufactures similar products in the United States and Norway. The U.S. and Norwegian oper operating income divided by total assets: (Click the icon to view the information.) (Click the icon to view the exchange rate information.) Read the requirements Reqy 0 Data Table * More Info The Regy U.S. Division The Operating income Total assets ROI 6,840,000 kroner 72,000,000 kroner Both investments were made on time of Grandland's investment i $1. During 2017, the Norwegian exchange rate on December 31, rate during 2017 is [(9 + 10) 2] $ Reqy 8,500,000 17.00% Begin Print Done ( 9 ( $ The Norwegian division's ROI based on kroners is helped by the inflation that occurs in Norway in 2017. Inflation boos are not increased by the inflation that occurs during the year. The net effect of inflation on ROI calculated in kroners ist After adjustments for inflation and currency differences, the U.S. Division earned the higher ROI. Requirement 3. Which division do you think had the better Rl performance? Explain your answer. The required rate of re parentheses or a minus sign.) Measure of income Imputed cost of investment - RI HW Score: 46.6%, 2.33 of 5 pts Question Help ganized as decentralized divisions. The following information is available for 2017; ROI is calculated as 2016. The exchange rate at the ecember 31, 2016, was 9 kroner = ed steadily in value so that the ner = $1. The average exchange 1. d to two decimal places, XX.XX%.) n's operating income. Since the assets are acquired at the start of the year 2017, the asset values value for the numerator relative to the denominator. (calculated in U.S. dollars) is 13%. (Enter all amounts in U.S. dollars. Enter a residual loss with 3 of 5 (4 complete %E23-29 (similar to) The Grundland Corporation manufactures similar products in the United States and Norway. The U.S. and Norwegian operations are organized as decentralized divisions. The following information Operating income divided by total assets Click the icon to view the information.) Click the icon to view the exchange rate information) Read the requirements Requirement 1. a. Calculate the U.S. division's operating income for 2017 The U.S. Division's operating income for 2017 is $ 1,445,000 Requirement 1. b. Calculate the Norwegian division's ROI for 2017 in kroner. (Enter the ROI as a percentage rounded to two decimal places, xx.xx%) The Norwegian division's ROI for in kroner is 9.50 % Requirement 2. Top management wants to know which division named a better ROI in 2017. What would you tell them? Explain your answer Begin by calculating the Norwegian division's ROI in US dollars. (Round the operating income and total assets to the nearest whole dollar Enter the ROI as a percentage rounded to two decima (Operating income in U.S. dollars ! Total assets in U.S. dollars) (S 720,000 $ 8,000,000 ) 9.00 ROI The Norwegian division's ROI based on kroners is helped by the inflation that occurs in Norway in 2017 Inflation boost the division's operating income. Since the assets are acquired at are not increased by the inflation that occurs during the year. The net effect of inflation on ROI calculated in kroners is to use an inflated value for the numerator relative to the denominator After adjustments for inflation and currency differences, the U.S. Divisioneamed the higher ROL Requirement 3. Which division do you think had the better Ri performance? Explain your answer. The required rate of return on investment (calculated in US dollars) is 13%. (Enteral amounts parentheses or a minus sign.) Imputed cost of investment Homework: Chapter 23 Score: 0.53 of 1 pt W E23-29 (similar to) + 3 of 5 (4 The Grandland Corporation manufactures similar products in the United States and Norway. The U.S. and Norwegian operating income divided by total assets: (Click the icon to view the information.) (Click the icon to view the exchange rate information.) Read the requirements. The U.S. Division's operating income for 2017 is $ 1,445,000 Requirement 1. b. Calculate the Norwegian division's ROI for 2017 in kroner. (Enter the ROI as a percentage rounded The Norwegian division's ROI for in kroner is 9.50 %. Requirement 2. Top management wants to know which division earned a better ROI in 2017. What would you tell the Begin by calculating the Norwegian division's ROI in U.S. dollars. (Round the operating income and total assets to the (Operating income in U.S. dollars / Total assets in U.S. dollars) - ROI ($ 720,000 / $ 8,000,000 ) = 9.00 % The Norwegian division's ROI based on kroners is helped by the inflation that occurs in Norway in 2017. Inflation are not increased by the inflation that occurs during the year. The net effect of inflation on ROI calculated in kroner After adjustments for inflation and currency differences, the U.S. Division eamed the higher ROI Requirement 3. Which division do you think had the better Rl performance? Explain your answer. The required ratt parentheses or a minus sign.) Measure of income Imputed cost of investment U.S. Division 1445000 Norwegian Division 720000 RI Choose from any list or enter any number in the input fields and then click Check Answer. er. The required rate of return on investment (calculated in U.S. dollars) is 13% (Enter all amounts in U.S. dollars. Enter a residual loss