Alex runs a small farm shop which she setup 2 years ago. She is tinting that the shop gets very crowded at times which means that she loses potential customers. She is therefore looking for wayeto expand her business. She has come up with two separate options to help her to overcome this problem: - Buid a small extension to her existing shop OR 1: Invest in new shelving which will allow her to stool: the same produoe. but more efciently. freeing up some space She has researched these two options and has worked out the costs that are associated with each. Ale: reaches her planned retirement age in 5 years lime so plane to sell the business at that point. Assume that all oashitows occur at the end 01' the year. You can ignore all oeuhom that might occur after the and otthe 5 year period as Alex pieneto retire at this point Alex uses a decount rate at 15%. 13th Extension Shelving iiow "65in outow 1555.2) (134.3} Year 1 ' Cash inow 1'14 42 Required (a) Calculate the payback period for the two possible options {round your answer to the nearest whole month to) Calculate the NPV for each of the possible options to) Interpret your timings. explaining the advantages and disadvantages of the two methods. Make a recommendation for which option Alex should pursue