This diploma thesis deals with issues surrounding the evaluation of investment project effectiveness. Apart from general characteristics and identification of key terminology in the area of investment decision making and capital planning, which are outlined in the theoretical part of this thesis, the section also provides an overview of methods used to evaluate the effectiveness of the investment decision making process. Particular attention is paid to the issue of criteria selection based on cash flows generated by the investment project. Theoretical findings regarding the evaluation of investment effectiveness are then used in the analytical part of this this by evaluating the effectiveness of a real-life investment project.