This case study uses current dynamics in the U.S. beef cattle industry to illustrate the use of financial analysis tools such as net present value in making investment decisions. Two problems face the livestock producer in this case study: 1) should the producer purchase replacement females or keep existing unbred females; and 2) should the producer expand his operation in terms of both land and cows. Students are asked to estimate a net present value (NPV) for both investment decisions. These NPVs should account for risk as prices in the beef cattle sector are anything but certain.