Economic Viability of Using Artificial Wetlands in Rural Areas of Mexico

Abstract

This study analyzed the economic viability of implementing artificial wetlands in rural areas, utilizing a cost-benefit analysis methodology based on secondary sources and previous studies. The break-even point identified in this study indicates that a minimum of 0.52% of sales is necessary to cover total costs without generating profits or losses. This percentage represents the minimum requirement for a wetland to function at full capacity. Despite the high construction cost, the investment recovered in approximately six years. The evaluation demonstrates that the project is profitable, with a positive Net Present Value (NPV) of $388,875.62 (Mexican Pesos), suggesting that in addition to recovering investment, additional profits will be obtained at the end of the fifth year. The Internal Rate of Return (IRR) was 18.36%, exceeding the evaluation rate of 10%, which confirms the project's viability. The Benefit-Cost ratio is greater than 1, indicating that for every peso invested, a surplus of 0.11 pesos will be generated.