Your company has two divisions, one operating in the United States and one operating in Europe. Each division was started with an initial investment of $1 million. The accounting for the U.S. company is stated in dollars ($), while the accounting for the European company is stated in euros (D). Based upon the exchange rates at the time of the investment, the $1 million invested in Europe was equal to D800,000. Both companies earned 10% on investment in two recent years. The average exchange rate ($ per D) was 1.50 in the first year and 1.20 in the second year. If the profits were expressed in $, what was the return for the combined operations in these two years? Discuss the implications of this result for evaluating projects that involve foreign investment.