1. junior owes creditor iba $1,000, which is due and payable on june 1. junior has been in a car accident, has missed a great deal of work, and consequently will not have the funds on june 1. junior’s father, fred, offers to pay iba $1,100 in four equal installments if iba will discharge junior from any further liability on the debt. iba accepts. is this transaction a novation or an accord and satisfaction? what if fred defaults on his payments to iba? who can iba sue if she does not receive payment? explain. does this transaction have the required contractual consideration?

Rate of return douglas keel, a financial analyst for orange industries, wishes to estimate the rate of return for two similar-risk investments, x and y. douglas's research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year earlier, investment x had a market value of $27 comma 000; and investment y had a market value of $46 comma 000. during the year, investment x generated cash flow of $2 comma 025 and investment y generated cash flow of $ 6 comma 770. the current market values of investments x and y are $28 comma 582 and $46 comma 000, respectively. a. calculate the expected rate of return on investments x and y using the most recent year's data. b. assuming that the two investments are equally risky, which one should douglas recommend? why?