Mark is refinishing an antique china cabinet and has already spent $180 on the restoration. Mark discovers that he needs to do an additional $200 of work to make the cabinet worth $360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for $100. What should he do?
A.
He should sell the cabinet now for $100.
B.
He should complete the additional work and sell the cabinet for $360.
C.
He should keep the cabinet since it wouldn’t be rational to spend $380 restoring a cabinet and then sell it for only $360.
D.
It does not matter which action he takes since the outcome will be the same either way.