Today's business environment is one of constant instability and changes which in the focus of management's activity put an efficient and flexible planning process. Capital budgeting in such an environment is becoming useful tool and the cash flow evaluation of investments projects represent one of it's most important step. Author will further demonstrate in the theoretical component of the thesis the important elements which affect the evaluation of cash flows and the way of their application in the same process. Thereafter is defined the treatment of financial costs and impact of tax burden, depreciation and inflation on the cash flows. Particularly are defined bias manifestations and negative consequences which they may have on the relevance of the evaluation. All above mentioned will be highlighted and through the scenario presented on the example of hotel development using guidelines presented in the theoretical component of the thesis. The example also pointing on the occasional divergence between theoretical guidance and practical procedures, and on the proper treatment of the uncertainty which is an integral part of every evaluation.