Margin Analysis

Let’s start with the assumption of an living expense per year of

A possible investment shall be limited to

The return needed is the sum of the possible investment and the living expenses. For a given business, realistic margins are often known. Hence, it can be assessed upfront, if a started business will cover living expenses.

Task: Plot the margin as a function of investment.

Array

There are many solutions, naturally. We start here by creating an array with investment increments. It shall start with 100000 € and the increment by 50000 €.

incr = 50000
investArr = []
for i in range(2, 12):
    invest = i * incr 
    investArr.append(invest)

For more technical details, see Python_Listing

Dataframe

Next, we create a dataframe using this array and “Investment” as the column name.

df = pd.DataFrame(columns=["Investment"], data=investArr)

For more technical details, see Pandas_Listing

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