Question $5$

$0\mathrm{.}25$ pts

Following #$4,$ how will the sale of the old equipment affect the free cash flow $($FCF$)$ in the $3^{rd}$ year?

Please choose the correct one out of the following two statements.

The sale price $($$$50,000)$ should be included in the $3$rd year's FCF$.$

The after$-$tax salvage value $($i$.$e$.,$ the answer to #$4)$ shoulctbe included in the $3$rd year's FCF$.$