I NEED A GOOD EXPLANATION WITH NUMERIC FORMULAS AND EXAMPLES.

Analyze and discuss the following statement (Explain why you agree or disagree - Use a counterexample to disprove the statement if it is your final consideration).

1. "The discounted recovery period ensures that all projects we accept will never have a negative Net Present Value (VPN), although we may reject a good project, whose VAN is positive".

2. Modigliani and Miller completely ignore the fact that the higher the debt, the higher the interest rate of the debt increases. Explain carefully whether this objection is correct. c). What is the difference between business risk and financial risk? How can they be measured in a market risk?

References: Dumrauf, G. (2010). Corporate Finance: A Latin American Approach (2nd ed.).