Preparing a project report involves an analysis of financial data to project future cash outflows and inflows, as well as, a thorough assessment of the following: 1. The projects potential in the market 2. Its technical feasibility 3. Its environmental impact 4. Its financial feasibility 5. Availability of managerial skills required for the project Why i s a n environmental impact documented in a project report and how can it affect future cash inflows and outflows.