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Question 4 [9 points]. Wayne Biomedical has purchased a Biomedical Atomic Force Microscope (bio-AFM) for use in its Nanomedicines division. The bio-AFM cost $1,140,000 to

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Question 4 [9 points]. Wayne Biomedical has purchased a Biomedical Atomic Force Microscope (bio-AFM) for use in its Nanomedicines division. The bio-AFM cost $1,140,000 to purchase and install. It can be depreciated according to a 5-year MACRS schedule. Since this microscope has been specially equipped to support the needs of this advanced technology company there have already been several interested parties who have expressed interest in purchasing this equipment in future years. You have been asked to help Wayne Biomedical determine which of these offers they should accept (i.e. which is the most advantageous or profitable)? Ordinary and capital gains for Wayne Biomedical are taxed at a 34% rate. (Hint: To answer this question calculate the net proceeds from each sale option Offer #1 : LexCorp-has offered to purchase the bio-AFM for $570,000 at the end of year 3. Offer #2: Virtucon-has offered to purchase the bio-AFM for $427,500 at the end of years. Offer #3: Globex-has offered to purchase the bio-AFM at the end of year 8 for $142,500

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