Marginal cost of capital schedule
What is MCC (marginal cost of capital schedule)? The schedule is always a horizontal line. Elaborate.
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a) Capital schedule’s Marginal cost is a graphical representation of the weighted average cost of capital at various levels of financing. b) The MCC schedule is not a horizontal line all the time. For several firms MCC schedule increases, generally at discreet intervals, when the funds amount to be raised increases.
Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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