A Business Anticipates Future Operating Revenues of $200 Million, Future

Multiple Choice

A business anticipates future operating revenues of $200 million, future operating costs of $150 million, and sunk costs of $60 million. This business should:

A) permanently shut down because the value of staying open is negative.
B) continue operations because the sunk costs are less than the future operating revenues.
C) continue operations because the future operating revenues are greater than the future operating costs.
D) permanently shut down because the ratio of future revenues to future costs is less than two.