You and your friend are discussing capital budgeting. Your friend makes some comments about inflation and capital budgeting analysis. Comment 1: If inflation is lower than expected, real payments to bondholders are higher than expected Comment 2: If inflation is higher than expected, the profitability of the project is higher than expected Comment 3: Inflation affects all revenues and costs uniformly. Which of the following comments made by your friend regarding inflation and capital budgeting analysis is (are) most accurate? A) Comment 1 only B) Comment 2 only C) Comment 1 & 3 D) Comment 1 & 2 E) Comment 1, 2, & 3