Countries suffering from inflation resort to various remedies in order overcome it. Besides, the ways how to live with inflation are sought in these countries. inflation affects the economies in many ways. Moreover, differemt sectors of the same economy are affected in different ways. In this paper the effects of inflation, which dominated the Turkish Economy for a long time, on forestry investment decision are studied. Deflnition of inflation is given. A method of measurement of inflation is explained. The nominal and reel value of money are discussed. Preparation and evaluation of investment projects under inflationary conditions are examined. Conditions of adding inflation into the basic compound interest fornnulas are investigated. Finally, an explanation of the required adjustment in the Faustmann Formula necessary to use it under inflationary conditions is presented.