[decompiled_dev]

It depends on your view point and the model you are making.

Generally it will be your cost of capital to be used as a discount rate. Say if you borrow at 10%, then you need account for that every year you need to wait for that return.

A company with access to cheap capital can use a lower discount rate, and come up with higher net present value based on distant cash flows compared to a company that needs to pay a lot.

Net present value is a normalization measure.

[andersentobias]

But why do I need to account for the borrowing costs in the case where there is no borrowing involved?

Because I always discount with the rate I can borrow money at, right?

It vaguely seems like there is some opportunity cost argument to be made here...? Maybe?