Carelli Company Has Old Inventory on Hand That Cost $36000

Carelli Company has old inventory on hand that cost $36000. Its scrap value is $48000. The inventory could be sold for $120000 if manufactured further at an additional cost of $38000. What should Carelli do?

A) Sell the inventory for $48000 scrap value
B) Dispose of the inventory to avoid any further decline in value
C) Hold the inventory at its $36000 cost
D) Manufacture further and sell it for $120000.