Outside Temp Sensor

I have a 99 323i. I'm looking for the for the sensor that controls the reading of the outside temp. In my instrument pannel the digital display show and outside temp of -40 and it never changes. Ever since the digital display showing the outside temp stopped working correctly my AC seems to be not working correctly. Can anyone help me.

You ripped the sensor off most likely, its in the triangular shaped part in front of either the right or left front wheel. and yes you lose the ac on some models when you lose the sensor.