You are considering an investment into a new private equity fund, which is now accepting capital commitments. When the fund begins acquiring properties, capital calls will be made for capital contributions during the investment period. The fund will charge a fee of 65 basis points on capital committed and 75 basis points on capital invested after the investment period ends. What is the annual fee the first year? Capital flows are expected as follows:

Year	Contributed Capital	Capital Returned	Invested Capital
1	$100 mil	0	$100 mil
2	$150 mil	0	$250 mil
3	$200 mil	0	$450 mil
4	0	0	$450 mil
5	0	$100 mil	$350 mil
6	0	$100 mil	$250 mil
	0	$150 mil	$100 mil

Select one:

a.

3.38 million

b.

0.65 million

c.

0.75 million

d.

2.93 million

All info provided