This case examines capital budgeting issues related to the construction and operation of a marina. The case requires students to identify the relevant cash flows and discount these to establish a net present value for the investment. Issues addressed through the case include incorporating inflation into cash flows and the choice of appropriate discount factors; i.e. nominal and real, tax issues relating to the treatment of cash and non-cash items, the determination of terminal values, and the impact of depreciation on after-tax cash flows. The case extends the student beyond a simple calculation of net present value to the derivation of an appropriate rental in the first year of operations to ensure that breakeven is achieved. Further issues arising from this open up opportunities for broadening the discussion to risk management, simulation, and project management. The case is currently being used in an undergraduate, intermediate management accounting course.