Financial management calculation questions An enterprise plans to set up a branch.

The weighted capital cost of Scheme A = 6% * 50/500+10% *100/500+10% * 350/500 = 9.06%.

The weighted capital cost of scheme b = 6% *100/500+10% *150/500+15% * 250/500 =1.

The weighted capital cost of Scheme C = 6% *150/500+10% * 200/500+20% *150/500 =1.8%.

Option A has the lowest weighted capital cost, so option A is selected.