The Weighted Average Cost of Capital:equals the sum of the cost of equity and the cost of debt weighted by their respective share of the project’s capitalequals the product of the cost of equity and the cost of debt weighted by their respective share of the project’s capitalis often used as the discount value in calculating the net present value of a projectboth equals the sum of the cost of equity and the cost of debt weighted by their respective shares of the project’s capital and is often used as the discount value in calculating the net present value of a project.
