9. rate. If the inflation rate was positive the expected NPV of an investment would be: A) understated if real cashflows were discounted by the nominal discount rate. B) understated if nominal cashflows were discounted by the nominal discount C) overstated if the real cashflows were discounted by the nominal discount rate. D understated if the nominal cashflows were discounted by the real discount rate. E) overstated if the real cashflows are discounted by the real discount rate