Suppose Elizabeth Entrepreneur (EE) raises her first round of venture capital investment from Very Good Venture Capitalists (VC) in order to grow her company, University Food, Inc. (UFI)

VC invests $2.1 million for 30% of the company on an "as converted basis" in Participating Convertible Preferred Stock with a liquidity preference of 1x, and receives 5 million shares in UTI.

What would be the payout to VC if the company is sold 4 years after the investment for $ 10 million?

The correct Answer is 4.47 million dollars. But can you please show me step by step to get the answer? Thanks.