In the 1990s, coal was a preferred way to generate electricity in North America. Because of the air pollution effects of burning low quality coal, the Canadian EPA (Environment Protection Agency) mandated all coal power plants to install scrubbers. These scrubbers would significantly remove the sulphur, mercury, and other pollutants from coal prior to their combustion for electricity generation. Suppose that each scrubber costs $20 million CAD (at time t=0) and has a useful life of 10 years and has no effect on the cost of production of electricity. If the depreciation and tax rates are 15% and 30% respectively, then what is the incremental change in the free cash flow for the coal power plant in Year 2 (at time t=2) because of the scrubber installation? Question 5 options: FCF increases by $832,500 FCF decreases by $624,375 FCF increases by $982,800 FCF decreases by $982,800 FCF increases by $800,100