A point of clarification to be sure I understand: When we consider all the cash flows of an investment and are considering taking out a loan to cover our costs, we don't include the loan repayments cash flows as part of the equation because we are discounting our cash flows at the loan interest rate (assuming the loan can be repaid at any time) and that discounting is taking the loan interest into account - is that right? I am looking at Q&A 2.18 as an example.
Yes. Had we accumulated then you would be increasing the loan taken out at time zero at the loan rate - so it's clearer to see it then. But equivalent to reducing all the other by the rate when we find the NPV.
