1.) We do not need to worry about interest expense when making a capital budgeting decision

A. True

B. False

2.) Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $6 million to buy the machine and $10,000 to have it delivered and installed. Building a cleanroom in the plant just for the machine will cost an additional $3 million. The machine is expected to have a working life of six years. Which of these activities will be reported as an operating expense?

A. the delivery and install cost and the cost of the depositor

B. the cost of the depositor only

C. None of these costs should be reported an an operating expense.