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zavuch27
19 days ago
14

Difference between WACC AND WMCC

History
2 answers:
katrin2010 [1.6K]19 days ago
5 0
<span>MCC (Marginal cost of capital) essentially refers to the additional expense incurred due to a new project. In contrast, WACC pertains to all ongoing projects managed by the company</span>
LenKa [1.7K]19 days ago
4 0

WACC stands for the weighted average cost of capital, whereas MCC denotes the marginal cost of capital.

The marginal cost of capital represents the weighted average cost associated with the last $1 obtained for the business. This concept is applicable in capital budgeting. In contrast, the weighted average cost of capital measures a firm’s cost of capital across different categories. While WACC encompasses total capital or the capital of specific projects, MCC is solely concerned with the average cost of the final segment of capital acquired.

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