The graph is a schematic projection of a worst case scenario by which during the next 17 years the high risk research fails to provide a commercially successful brand new technology which can support the company after product X becomes obsolete.

If this happens the profits will plummet to a net loss and company survival will be at stake.

Many of the company staff are hoping to remain with the company and see it grow. There is a lot of excitement about the prospects for growth.

• Investors are curious about the future potential of Innovation Systems, Inc. and are asking what the next product will be.

If after 17 years all research has failed to produce a new product the company will almost certainly be at risk of going out of business. Investors will see product X as a flash in the pan. In the few years prior to this event, tensions will be high and serious doubts will erode morale throughout the company. In short it will be a disaster.

This potential disaster can however be avoided with a high level of confidence.