The Weighted Average Cost of Capital:

1. equals the sum of the cost of equity and the cost of debt, weighted by their respective share of the projects capital
2. equals the product of the cost of equity and the cost of debt, weighted by their respective share of the projects capital
3. is often used as the discount value in calculating the net present value of a project
4. both equals the sum of the cost of equity and the cost of debt, weighted by their respective shares of the projects capital and is often used as the discount value in calculating the net present value of a project.