Financial Analysis
Weighted Average Cost of Capital (WACC) Explained: How to Find the Right Discount Rate Before You Say Yes to a £120,000 Investment
Before approving a £120,000 CNC machine purchase, one number matters more than the sales pitch: the discount rate. This guide walks through calculating Weighted Average Cost of Capital (WACC) using a real SME example, showing how blending the cost of debt and equity reveals whether an investment truly creates value or quietly destroys it.