Which of the following should NOT be considered as a cash flow in the capital budgeting process?

a, Cost Savings

b. Tax effect of depreciation

c. incremental Revenues

d. Dividend Payments

2. At the end of a capital project the equipment has been fully depreciated and is sold for $30,000. Working capital in the amount of $10,000 is also no longer needed for the project and converted to cash. The company's tax rate is 40%. What is the total terminal cash flow for this project?

a. 8,000

b. 28,000

c. 40,000

d. 22,000