Hi Casey,

thanks for your reply, and fair points. :)

Re: your first remark: Good idea! I'll look into creating such a graphic. The original idea was to also color all the numbers in the text accordingly, but of course, that doesn't work on Medium. The 240 stems from the assumption that a 20% investment leads to a 12-month ramp-up phase: 240/20 = 12. Correspondingly, we have only 120 in the other part of the formula because we assume gains only for half the ramp-up phase.

Re: your second remark: Absolutely correct, and that's exactly what's "encoded" in parameter Z. "Over time" in the case of our formula is 5 years (cf. assumption 1).

Best,

Max