Kaplan Exam Kit Question – Seagull & Co

Hello Sir,
I have the below doubt in the question :
You are an audit supervisor in Seagull & Co and are currently planning the audit of your existing 
client, Eagle Heating Co (Eagle), for the year ending 31 December. Eagle manufactures and sells heating and plumbing equipment to a number of home improvement stores across the country. 
The following information has been obtained during a planning meeting with the finance director. 
Inventory 
Eagle has experienced increased competition. In order to maintain its current levels of sales, it has 
decreased the selling price of its products significantly. The finance director expects increased 
inventory levels at the year?end. In addition to Eagle’s inventory, there will be inventory stored on 
behalf of a third party at the year?end. You plan to attend the year?end inventory count of Eagle 
which is being held three days before the year end due to staff availability of Eagle. A 
reconciliation will be performed to determine the year?end inventory quantities. 
Which TWO of the following factors may indicate overvaluation of inventory at Eagle? 
? Increased competition resulting in a decrease in selling price 
? Increased inventory levels 
? Increased inventory turnover ratio 
? Inventory consists of heating and plumbing equipment for home improvement stores 
? Inclusion of the third party inventory within Eagle’s inventory balance 
My question – As per answer it is 1st and 2nd however isnt 5th one also valid as inclusion of 3rd party inventory may result in overvaluation of inventory , isnt it ? and if not, then why , can you please explain ?

Thanks in advance 🙂