In an investment appraisal situation where inflation exists, consider the validity of the following TWO statements: If money cash flows are discounted using the real discount rate, the resulting NPV will be larger than the real NPV and may result in decisions to accept projects that are not shareholder wealth-enhancing. If real cash flows are discounted using the money discount rate, the resulting NPV will be lower than the true NPV. This may cause the rejection of projects that are shareholder wealth-enhancing. a. Statement 1 is true, Statement 2 is true b. Statement 1 is true, Statement 2 is false c. Statement 1 is false, Statement 2 is true d. Statement 1 is false, Statement 2 is false