Use the following information to answer Questions 1 to 3: Tuscin Capital is a hedge fund with an initial investment capital of $ 100 million. In its first year, the fund earns a return of 30 %. The fund charges a 2 % management fee based on assets under

Use the following information to answer Questions 1 to 3:
Tuscin Capital is a hedge fund with an initial investment capital of $ 100 million. In its first year, the fund earns a return of 30 \%. The fund charges a 2 \% management fee based on assets under management at the end of the year and a 20 \% incentive fee with a hurdle rate of 4 \%. The ending values of the fund (before fees for the current year) for the first 3 years are given below:
2009=$ 130 million
2010=$ 110 million
2011=$ 140 million
Other information:
A high-water mark provision applies; and The incentive fee is based on returns in excess of the hurdle rate and is calculated net of management fee.
The incentive fee for 2009 is closest to:

A $ 4.68 million.
B $ 5.48 million.

C $ 6.00 million.