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Accountants, bankers, mortgage brokers, etc. view the cost of an item (equipment, services, etc.) as the price, less any discounts, plus the debt service cost, as well as several other relatively minor costs, i.e. training, start-up, taxes and transfer, transportation-in, etc.  This is the total cost that gets booked. Price and cost are different markers. If a purchaser fails to pay for all the costs associated with an asset (car, house, etc.), i.e. price, debt service, etc., the asset will be reposed. This is true whether the asset is purchased for a business or an individual.  In this case the activity that drives the finance cost is the upgrade of the NEC or the construction of a new railroad.  If there is no upgrade or new railroad, there would be no need for any financing. Or if Amtrak or the government could pay for the upgrades from free cash flow, there would be no need for financing.  Not likely! So whoever upgrades the NEC (existing right-of-way or new one) will have to use debt to finance the project, and it will have to service the debt.  It is part of the total cost.
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