Escalations only apply to scenarios in a capital plan. They are based on the initial start year of the scenario and will not be applied unless the scenario is moved between different years, for instance from 2012 to 2013 (moving a scenario from Dec. 2012 to Jan. 2013 is a qualifying instance, but from Jan. to Feb of the same year is not). Escalation rates are never applied for the initial start year, but for all subsequent years. If scenarios are moved a year or more earlier, the escalation rate will be subtracted by the escalation rate of the year it is moved to, including all years in between. Likewise, if scenarios are moved a year or more in the future, the escalation rate will be incremented based on the escalation rate starting from the initial start year. Please refer to the diagram below for a visual reference.
Synopsis: This diagram illustrates a scenario that has been moved from an initial start year of 2012 to 2015. The escalation rate is set at 2%. The total initial cost of the project is $1,000,000.00. With the 2% escalation rate, the resulting project cost is 1,061,208.00.
