what is unlevered cost of capital 
unlevered cost of capital is an analysis using either a hypothetical or an actual debt free scenario to measure a company s cost to implement a particular capital project and in some cases used to assess an entire company unlevered cost of capital compares the cost of capital of the project using zero debt as an alternative to a levered cost of capital investment which means using debt as a portion of the total capital required understanding unlevered cost of capital