An analyst gathers the following information about a hedge fund:

• Beginning-of-year assets under management (AUM): $500 million
• Annual return before fees: 22%
• Management fee (based on end-of-year AUM before fees): 2%
• Incentive fee: 15%
• Hard hurdle rate: 10% The incentive fee (in $ millions) based on returns net of management fees is closest to: