Indirect method for CFO if interest expense is recognised as a financing activity

CFA Level I FRA
#1

Hello all,
If interest expense is recognised as a financing activity (assuming elected as such under IFRS), how would the CFO be calculated via the indirect method?
Can you use NOPAT instead of Net Income and then adjust for D&A and Δworking capital (excl. Δ interest A/P) - or - do you first calculate the CFO assuming interest expense is an operating activity, and then add back interest cash outflow at the final step (after calculating the interest cash outflow via the direct method)

#2

Increase CFO by the interest paid and decrease CFF by the interest paid.