The company has an offer from Duvall Valves to produce the part for $2,040 per unit and supply 1,080 valves (the number needed in the coming year). If the company accepts this offer and shuts down production of valves, production workers and supervisors will be reassigned to other areas. The equipment cannot be used elsewhere in the company, and it has no market value. However, the space occupied by the production of the valve can be used by another production group that is currently leasing space for $55,800 per year. Identify the following statements as true or false.

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