As a CFO, one of the things that leads to cash flow problems is excessive purchases of fixed assets and capitalized costs.

Managing your capital assets is a big challenge for the business owner.

The challenge that the purchase decision related to capital assets brings is how much revenue/production can the fixed asset produce and how much of a purchase commitment can be made.

When you purchase a fixed asset you not only purchase the asset for the present, but also for the long term.

If you underestimate the revenue/production the asset can produce, it will result in another purchase of a fixed asset prematurely and more consumption of cash flow.

If you overestimate the revenue/production the asset can produce it will result in too much idle capacity and more consumption of cash flow. 

If I had to pick one of the two evil outcomes, I would choose to underestimate the revenue/production.

By choosing to err on the side of underestimating, at least the asset met or exceeded revenue/production capacity and although it may be a strain, the ultimate strain is over estimating revenue/production and that has a higher probability of putting you out of business.