Three aspects of the Cash Flow statement / analysis that impact the value of an investment. These are: (1) Amount of expected cash flows (bigger is better); (2) Timing of the cash flow stream (sooner is better); and (3) Risk of the cash flows (less risk(y) is better).

Suppose you work as a project manager and are tasked to evaluate (at a high or strategic level) a proposed investment project that involves scaling up your existent operation to double output of your core product. Suppose producing double the output simply requires doubling the costs of production. Doubling output will increase revenues.

Why, in your opinion, can the project be problematic from the perspective of the first aspect (aspect (1))? Suppose the investment project is expected to generate higher cash flows once installed. Why, in your opinion, this may not be enough to raise the overall value of the project to the company?