Some businesses fail to take account of inflation in investment decisions. Does it matter given that, in recent years, the level of inflation has been low? What would be the effect of dealing with inflation incorrectly on NPV calculations (that is, would NPV be overstated or understated) by 

(a) Discounting cash flows that include inflation at real discount rates and 

(b) Discounting real cash flows at market discount rates that include inflation?