Question 4 a. If a firm with a $5 billion fund charges a 2 percent management fee for eight years, and 20 percent carried interest on all profits, and earns a 4 x return on its investments, what is the true multiple of investment (cash return) and IRR for the LP? (Assume that $5 billion investments are made equally at the beginning of the first through fifth years, the holding period of each investment is five years, and there are no transaction fees.)