Logg Multinational, Inc., has divisions in Canada, Germany, and New Zealand. The Canadian division is the oldest and most established of the three and has a cost of capital of 6.2%. The German division was started 3 years ago when the exchange rate for the euro was 1 euro=$1.30. The German division is a large and powerful division of Logg, Inc., with a cost of capital of 9%. The New Zealand division was started this year, when the exchange rate was 1 New Zealand Dollar (NZD)=$0.75. Its cost of capital is 15%. Average exchange rates for the current year are 1 euro=$1.60 and 1 NZD=$0.60.

Other information for the three divisions is provided:

Division data
	Canada	Germany	New Zealand
Long-term Assets	$24,485,100	11,893,900 euros	7,343,119 NZD
Operating Revenues	$23,359,640	6,260,000 euros	5,708,510 NZD
Operating Expenses	$18,570,000	4,200,000 euros	4,110,000 NZD
Income-tax rate	41%	37%	30%

1	Translate the German and New Zealand information into dollars to make the divisions comparable. Find the after-tax operating income for each division and compare the profits.
2.	Calculate ROI using after-tax operating income. Compare among divisions.
3.	Use after-tax operating income and the individual cost of capital of each division to calculate residual income and compare.
4.	Redo requirement 2 using pretax operating income instead of net income. Why is there a big difference, and what does it mean for performance evaluation?