marginal cost of capital

[khanazam]

one of the outline statements says explain the marginal cost of capital's role in determining the net present value of a project.
but when i read the readings for that section, it talks about how they can use the weighted average cost of capital in the calculation of the NPV project. So, just wondering is the marginal cost of capital the same thing as the weighted average cost of capital here?
thanks guys.

 

[texasecongrad]

From what i understand WACC is the same as MCC until you exhause your retained earnings and tap other areas for financing such as issuing new common stock which increases your risk and your rate goes up which becomes your MCC, rate at which you borrow additional dollars. hope this helps!