Hi I'm going to let you in to a secret today. The Board has confirmed that the launch of the new Protein Biscuit range is a certainty. The launch is scheduled for mid-April 2024. We have been asked to make the preliminary evaluations with regard to purchasing the necessary equipment. 1 have obtained quotations from several manufacturers for a compacting machine which will be an integral part of the biscuit-making process. Here is a breakdown of the estimated costs of acquiring the machine and related expenses (Reference Material). Julta states that the financing required for the project is already secured, and we will be getting the cash within the coming month. This means a significant increase in the cash balance in the short term as the bulk of the payments for the project will be made within a month or two of the product launch. A short-term investment is being considered to make productive use of the cash until it is required. Could you please drop me an email covering the following: Provide an explanation of the criteria for capitalisation of cost under IAS 16 Property. Plant and Equipment and whether the purchasing of the compacting machine would meet these criteria. Please also explain the treatment, as either capital or revenue expenditure, for each of the costs in the list based on the requirements of LAS 16. (Subtask (a)) What should be considered when choosing a short-term investment and what are some short-ferm investment opportunities that we could consider? (Subtask (b)) 13 Another matter that will be discussed at the SMT will be the proposed launch of a new protein biscuit range in April 2024. Ben reported that employee morale is low in the production facility. He believes unless we motivate our staff, it will not be possible to launch the biscuit range as planned. With the staff cadre at 159, Ben proposed that PB set up an HR department to address employee issues. In the interim, he proposes to set up an on-site caf to provide refreshments to all employees at subsidised rates. This on-site cal could be either inhouse operated or outsourced, I discussed this matter with Julia Mathews, Finance Director and she suggested that a zero-based budgeting (ZBB) approach be used to create a budget for this activity. Please prepare a briefing paper on how a ZBB approach can be applied to create a budget for the proposed new on-site cafe. Also, discuss two benefits and two challenges that we might face when using a ZBB approach to create this budget(Subtask (c)) ReferenceMaterial Expenditure on Compacting Machine The following expenditure will be incurred for the machinery. Notes: - The new compacting machine is expected to have a useful life of 10 years