2 Why? In mid-May, the Capital Planning Committee of the Twin Pines Golf and Country Club met to discuss a research report that they had just received. This report gave the results of a survey of the club members on the issue of which projects the club should begin this fiscal year. Members of the committee intended to use the report as a basis for selecting among alternative capital projects. A biographical description of the committee members is given in Appendix 1. Twin Pines Golf and Country Club was a private club situated in the southwestern corner of Hinsdale, Illinois, a suburb of Chicago. The club was founded in 1936 as an 18-hole golf course and dining room. In 1956, an additional nine holes were built, and in 1969 three outdoor tennis courts were added to the club. The Capital Planning Committee was a permanent committee of the Twin Pines Club. Its task in recent years involved the overseeing of the maintenance of current facilities. However, in this particular year the Board of Directors of the Club had given an additional task to the committee. They had been asked to make recommendations on new capital facilities. In this letter to the committee, the president of the club stated: "We must be prepared to add new facilities to serve the current and future interests of our members and to attract new members. It is your task to make recom- mendations in this matter." In response to this request, the Capital Planning Committee held a series of meetings where they discussed possible projects requiring capital expenditures during the next few years. From these meetings they identified five potential projects and the associated capital costs and operating costs per year. These projects were.