When do you use MCC and when do you use WACC? Is it the case for optimal cap budget Q’s, NPV, IRR use MCC and use WACC anywhere else? thank
Capital Budget seems to be the only place I ran into MCC…
So is that both NPV and IRR? Cos in the notes I can only see refernce to IRR…
From what i remember…The MCC is shown in the Marginal Cost of Capital Schedule as the upward sloping curve. The Y axis is the WACC and the X axis is the amount of capital. As more capital is used, the higher the WACC will get. MCC schedule shows the WACC for different amounts of financing… Remember that and you should be good to go.