$4.$ What are the implications for WVP if it has a participating versus conventional liquidation preference and OptiGuard is sold for $$15$ million in three years?

Guidelines: Compare the returns $($IRR$)$ to WVP in the event the liquidation preference is standard preferred or participating preferred.

Assume that investors have a liquidation preference of $$5\mathrm{.}7$ million and own $41\%$ of the equity

Refer to Sheet $$Exhibit $7$ and complete the cells highlighted in yellow.