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Difference between WACC AND WMCC

User BabaVarma
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MCC (Marginal cost of capital) is basically addition to the cost due to the new project. WACC is for all projects running by company
User AnTrakS
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WACC refers to the weighted average cost of capital, while MCC refers to the marginal cost of capital.

The marginal cost of capital is a concept that refers to the weighted average cost of the last $1 raised in a business. The concept is used in capital budgeting. On the other hand, the weighted average cost of capital is a calculation of a firm's cost of capital in each category of capital. While WACC refers to total capital, or to the capital of a given project, MCC refers only to the average cost of the last portion of capital raised.

User Tommy Strand
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