How Is Interest Expense That Is Associated with a Project

Multiple Choice

How is interest expense that is associated with a project treated in the capital budgeting process?

A) It is treated as a cash outflow when estimating the incremental cash flows associated with a project.
B) It is built into the discount rate.
C) It is considered a synergistic incremental cash flow.
D) Interest expense is not relevant to any capital budgeting decisions.