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A VC investor has invested $10 million in a venture that is now being acquired for $50 million. The investment has a 2X liquidation preference.

A VC investor has invested $10 million in a venture that is now being acquired for $50 million. The investment has a 2X liquidation preference. Alternatively the preferred stock is convertible into 25% of the common shares that would be outstanding prior to the acquisition. What is the best payoff the VC investor can get from the acquisition?

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