The subject of this graduate thesis is cost-effectiveness of investment into the cultivation of industrial hemp. The purpose and main objective of the thesis is to a prove, through an economic-financial analysis, that it is justified to invest in industrial hemp. The thesis will also review legal regulations of cultivating industrial hemp in the Republic of Croatia (RH), Serbia and Slovenia. By comparing the rules and restrictions, it will be shown where the Republic of Croatia currently stands in relation to its neighboring countries. Moreover, the data on planted hectares of industrial hemp for the past three years will be analyzed. The data will be presented by counties, the number of hectares and the type of legal entities that planted the industrial hemp. Furthermore, the basic features and components of the business plan will be defined, which represent an important segment of every business venture. Through economic-financial cost-effectiveness analysis and dynamic analysis of the project's investment in industrial hemp production, it will be proven that the investment is market-justifiable and economically viable.