Through the work, the methods of discounted cash flows are calculated using the method of weighted average cost of capital (WACC), adjusted current value method (APV) and cash flow method (FTE) method. Three of these methods were applied when assessing the profitability of investment in investment project investment in the hotel in Medulin municipality. Based on the obtained results, a comparative analysis of the dynamic evaluation of the project was made, with a special focus placed on the net present value of the project, which is obtained on the basis of discounted cash flows. In addition to the mentioned methods, the return period, as well as the relative present value, were observed. Each of the above methods has its advantages and disadvantages, which are taken in to account when choosing the optimal method for evaluating the investment project. At the end of the paper, an explanation and a comparison of the results obtained with the aim of obtaining an expert contribution to the advantages and disadvantages of the methods analyzed and their application in practice were given. The subject of the research is the process of making an optimal investment decision conditioned by the results of the investment project assessment. The aim of this paper is also to propose the optimal method of assessing the investment project on the basis of an analysis of the advantages and disadvantages of each of the methods applied. In order to obtain a quality background, parallel research was used, based on investing in an investment project, but also based on research conducted by other authors. The results of both own and other research papers together gave the basis for making conclusions in this paper.