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This case provides a comprehensive introduction to the basics of capital budgeting. It presents students with two distinct capital budgeting exercises revolving around the athletic footwear industry. The first exercise is about a running sneaker with a large capital outlay and a six-year project life. It contains many traditional project cash flows as well as a significant endorsement risk. The second exercise involves evaluating a hiking shoe project with a smaller initial investment in a more rapidly growing but unfamiliar market segment. The authors have used this case with audiences including sophomore undergraduates, MBAs, and seasoned executives. In the first two audiences, students build spreadsheet solutions from the assumptions provided; for executives, we often give them the completed analysis and focus more on interpretation of financial metrics and on qualitative discussion. We have also used one or both of the exercises as exam questions.