On May 15, 2015, Nisheeth Mehta (Chief Executive Officer, Microsign) told Kunal Sharma, his technical officer, that Bharat Nangia, the procurement head of Honda cars, had asked him to show the plastic fasteners manufactured by their company. After examining the products, Nangia had told Mehta, “Though the plastic fasteners are of good quality, they are not on par with current manufacturing technology. You need to invest in high-tech, higher-capacity machines and good-quality multicavity moulds”. On hearing this comment, Mehta realised that to remain competitive in the market and retain clients like Honda, they needed breakthrough improvements. Mehta wanted to buy a new machine and multicavity moulds, which required a vast amount of capital. He asked Sharma to search for a new machine that would meet the requirements of technology upgradation and expansion of Microsign. He also reminded Sharma that finding an appropriate machine, forecasting future cash flows and estimating the cost of capital required to make the proposed investment project’s capital investment decision were Sharma’s responsibilities. Therefore, Sharma had to identify a machine, estimate the amount of expenditure involved, present an analysis of the likely financial performance of the new investment related to the capital budgeting decision and, most importantly, see that the investment in the new machine created value for the company.