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The case involves an unquoted PLC in the gravel and readymix concrete business. It deals with the purpose underlying investment appraisal in an unquoted firm and the problems of carrying it out under inflationary conditions. It also deals with the problems of financing large projects in an unquoted firm. The choice of industry is not important for the teaching objectives of this case, which are: (1) Student recognition of the difference between real and nominal estimates of cash flows and discount rates with respect to expectations of inflation.(2) The purpose and relevance of discounted cash flows in appraising investments in an unquoted company. (3) An understanding of the problems of financing major projects in an unquoted public company. (4) The recognition that both debt and finance leases have the same effects on gearing and the undiversifiable risk accruing to shareholders.