ECONOMIC FEASIBILITY OF THE PRODUCTION POTENTIAL OF PHYSIC NUT (Jatropha curcas L.) IN PANAMA

Abstract

The economic viability of the production of physic nut tree as a source of vegetable oil for biodiesel production was investigated. The data of the cost of establishment, the agronomic management, and the production of three plots of 0,5 hectares, were recorded during the period 2013 - 2015. For the analysis, three production scenarios were established based on the estimated yields for a period of 11 years. Annual net cash flow was calculated and converted to a present value. From the net cash flow, were calculated the net present value, the internal rate of return, payback period, and the benefit-cost ratio. The study has shown for the baseline scenario, positive returns on investment in planting physic nut tree. The investment in the plantation showed a recovery period of five years under the baseline scenario. Having recovered the initial investment, a net present value of $ 1503,00 ha^-1 that exceeded the discount factor was obtained. The internal rate of return showed the investment is economically profitable and the benefit-cost ratio result was $ 1,30.