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Suppose you finance a project partly with debt. How should you treat the proceeds from the debt issue and the payments of interest and principal?

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Suppose you finance a project partly with debt. How should you treat the proceeds from the debt issue and the payments of interest and principal? The debt proceeds should not be subtracted from the required investment; the interest and principal payments should be recognised as cash outflows O The debt proceeds should be subtracted from the required investment; the interest and principal payments should be recognised as cash outflows The debt proceeds should be subtracted from the required investment; the interest and principal payments should be recognised as cash inflows The debt proceeds should be subtracted from the required investment; the interest and principal payments should not be recognised as cash inflows The debt proceeds should not be subtracted from the required investment; the interest and principal payments should not be recognised as cash outflows

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