The ten-year Treasury yielded 4.94 percent on Friday, October 30. For a project that does not pay until late in the decade, that yield is one public way of pricing the wait. Discount a distant dollar at a higher rate and it is smaller today. The mechanism is old. The input, this week, is 4.94 percent.
A short project barely feels the long yield. Cash expected this year is almost cash. Cash expected in year twelve is an argument about time. When the reference rate for time is higher, the argument has to be better. That is the hurdle outsiders can actually see.