Bonita Industries has old inventory on hand that cost $18750. Its scrap value is $25000. The inventory could be sold for $62500 if manufactured further at an additional cost of $18750. What should Bonita do?

Manufacture further and sell it for $62500

Sell the inventory for $25000 scrap value

Hold the inventory at its $18750 cost

Dispose of the inventory to avoid any further decline in value