MBS Pty Ltd (MBS) is an investment company. It has just started a hedge fund, called AFIN fund (AFIN), in 2021. The hedge fund has the following fee structure: The initial asset under management (AUM) of the fund is $10 millions at the beginning of 2021. Fees are charged at the end of each year. Management fee is charged on the AUM after performance fee. a) AFIN fund has reported a 10% profit in 2021 before fee. How much MBS can collect when the fees are crystalised at the end of 2021 ? [2] b) In another universe, AFIN was down 10% before fees in 2021. How much fees MBS can collect if AFIN can make a profit of 5% in 2022? [3]