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An analyst gathers the following information about a hedge fund:
| Beginning-of-year assets under management (AUM) | $350 million |
|---|---|
| Management fee, based on year-end AUM before fees | 2% |
| Incentive fee | 20% |
| Hard hurdle rate | 5% |
| Annual return before fees | 10% |
If the incentive fee is based on returns net of management fees, the incentive fee (in $ millions) is: