1. Which type of business, a software company or an electric utility, would benefit more from improving ROIC than from increasing growth? Why?
2. Maria wants to buy an apartment in the city center after her graduation in four years. An apartment cost $20,000 and the price is expected to increase by 4% each year. Maria wants to sell her old house in the suburbs and make a deposit for 8% per annum. How much will Maria’s new apartment cost and how much must she save today?