This paper report results of a survey on the capital budgeting practices in Rwanda. A questionnaire seeking to assess the capital budgeting techniques, cash flow estimation was used in order to assess problems faced in applying theory to practice was distributed to 30 Rwandan companies these included the banking and non banking institutions. The study indicated that most firms use internal rate of return (IRR) and discounted payback period (DPBP). The study also found some ignorance on the application of cost of capital as most firms were found using the cost of equity when discounting their cash flows despite the fact that most firms were found financing their projects using both debt and e
Download