The investment decision can be made by comparing the present value of the future cash flow with the cost of the investment to be made today. If the present value of the future cash flow is more than the cost of the investment to be made today, then it is understood that the relevant investment will be a profitable investment if the expectations are realized. On the contrary, if the investment cost is more than the present value of the future cash flow, it can be easily determined that the relevant investment is a losing investment.