The Capital Analysis Tool powered by Kaufman Hall is set up with a series of screens that must be completed with financial or environmental data. Each screen focuses on specific data sets of information. This factor is the assumed discount rate, or what your organization sees the cost of capital to be.
Capital cost is a mixture of the borrowing rate for debt, and equity.
The factor is used to calculate the net present value of the project based on your capital structure. It is not an interest rate from external sources. Most Finance or Planning departments will be able to give you this number. If your state charges sales tax against your institution s revenue or property, you will need to enter these as percentages. It is used to calculate the tax paid on your institution s income.