An aspect of the Cash Flow statement / analysis that impacts the value of an investment is the amount of expected cash flow (bigger is better). Suppose you work as a project manager and are tasked to evaluate a proposed investment project that involves scaling up operation to double output of your product. Suppose producing double the output requires doubling the costs of production. Doubling output will increase revenues.

Why can the project be problematic when analyzing the amount of cash flow? Suppose the investment project is expected to generate higher cash flows once installed, why could this not be enough to raise the value of the project to the company?