Problem #1: (5 Points) During negotiations for a $500,000 equity investment from an Angel Group, the lead Angel representing the Angel Group offers you either: 1) A Pre-Money Valuation of $700,000 via a Common Stock investment, OR 2) A Pre-Money Valuation of $1,000,000 via a Series A Preferred Stock with a zero dividend rate and at a 1.5X liquidation preference. Based "strictly" on these economics AND that you are "extremely" confident that the ultimate Exit Value of the company will exceed $15 million, which investment offer would you accept and why? "Type-in" Selected in Option in Blank (Specify either #1 or #2): Rationale for above decision: (Hint: The below optional template/format might be helpful in organizing/formatting your evaluation of the two Options. It is not a requirement to complete, but you may.) Option #1: Common Option #2: Preferred Pre-Money Valuation % Capital Investment % to Post Money Valuation Forecasted Exit Value to to to Less: Preferences Distributable Equity % Equity-Founders* Forecasted Exit Equity $ Value* * $ % Effective % Equity* * * * * %