Exercise 3.2 ★ HIGHEST AND BEST USE BGW Ltd is in the business of bottling wine, particularly for small wineries that cannot afford sophisticated technical equipment and want to concentrate on the growing of the grapes themselves. One of the key features of the bottles that are used by BGW Ltd is that, for the bottles used for white wine and champagne, they have an built-in insulation device that is successful in keeping the contents of the bottle cold, with the temperature being unaffected by the bottle being held in the hand. In January 2014, Solar-Blue, a company experimenting with energy sources useful in combating climate change, produced a device which, when attached to the outside of a container, could display the actual temperature of the liquid inside. The temperature was displayed by the highlighting of certain colours on the device. Exactly how this device could be attached to wine bottles had yet to be specifi cally determined. However, BGW Ltd believed that its employees had the skills that would enable the company to determine the feasibility of such a project. Whether the costs of attaching the device to wine bottles would be prohibitive was also unknown. As BGW Ltd was concerned that competing wine bottling companies may acquire the device from SolarBlue, it paid €7 100 000 for the exclusive rights to use the device with bottles. The accountant wants to measure the fair value of the asset acquired. Required Discuss the process of determining this fair value.