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:

- The project's potential in the market;

- Its technical feasibility;

- Its environmental impact;

- Its financial feasibility;

- Availability of managerial skills required for the project.

Why is an environmental documented in a project report and how can it affect future cash inflows and outflows. (1.5 marks for one well-expressed point)

(15 points total)