9,5,1 refers to the alternative 'B' strategy for instead continuously engaging in 9 high risk, 5 medium risk and 1 low risk research project.

The current level of research investment of about $700,000 per project, per year, will be maintained for the current strategy but increased to 1 MM per year per project for the alternative 'B' strategy.

The increased investment of $300,000 per project per year is expected to result in a reduction of the the time it takes to complete a high risk research project from 7 to 5 years. This conclusion was reached after consultation with project leaders who feel that the occasional lack of certain expensive resources gives rise to delays or unnecessary extra tasks amounting to accumulated effective delays of about 3 months each year. The extra money will provide the necessary resources to avoid this in the future.

The projections for alternative 'B' indicate an initial drop in profits to around 5 MM due to the increased investment, but a vastly higher profit potential compared with alternative 'A' depicted in the previous slide and it has no extra risk of failure.

There is a 1 in 10 risk with strategy 'B' of a two year transient loss of profits when product 'X' becomes obsolete. However the long term prospects are for profits in the neighbourhood of 50 MM, which is over twice that expected from the current strategy and about 3 times that of strategy 'A'.