Given a text T, and several options, according to the question posed in the text T to choose the most appropriate option from the options as the answer, please directly output the most appropriate option, do not need to output the explanation.

Daniel Collin is a junior analyst at JRR Equity Partners, a private equity firm. Collin is assigned to work with Susan Tseng, a senior portfolio manager. Tseng and Collin meet to discuss existing and potential investments.Tseng starts the meeting with a discussion of LBO firms and VC firms. Collin tells Tseng,LBO firms tend to invest in companies with predicable cash flows and experienced management teams, whereas VC firms tend to invest in companies with high EBITDA or EBIT growth and where an exit is fairly predictable.Tseng and Collin next analyze a potential investment in the leveraged buyout of Stoneham Industries. Specifically, they assess the expected gain if they elect to purchase all the preference shares and 90% of the common equity in the LBO. Details of the LBO include the following:●The buyout requires an initial investment of $10 million.●Financing for the deal includes $6 million in debt, $3.6 million in preference shares that promise a 15% annual return paid at exit, and $0.4 million in common equity.The expected exit value in six years is $15 million, with an estimated reduction in debt of $2.8 million over the six years prior to exit.Tseng and Collin next discuss JRR's investment in Venture Holdings, a private equity fund. Selected details on the Venture Holdings fund include the following:●Total committed capital is $115 million.●The distribution waterfall follows the deal-by-deal method, and carried interest is 20%.●On its first exit event a few years ago, the fund generated a $10 million profit.●At the end of the most recent year, cumulative paid-in capital was $98 million, cumulative distributions paid out to LPs were $28 million, and the year-end NAV, before and after distributions, was $170.52 million and $131.42 million, respectively.●Tseng and Collin estimate that the fund's NAV before distributions will be $242.32 million at the end of next year.Finally, Tseng and Collin evaluate two venture capital funds for potential investment: the Squire Fund and the Treble Fund. Both funds are in Year 7 of an estimated 10-year term. Selected data for the two funds are presented in Exhibit 1.
| Exhibit l.Selected Data for the Squire Fund and the Treble Fund |
| Squire Fund | Treble Fund |
| DPI | 0.11 | 0.55 |
| RVP I | 0.95 | 0.51 |
| Gross IRR | -11% | 10% |
| Net IRR | -20% | 8% |


After reviewing the performance data in Exhibit 1, Collin draws the following conclusions:Conclusion 1 The unrealized return on investment for the Squire Fund is greater than the unrealized return on investment for the Treble Fund.Conclusion 2 The TVPI for the Treble Fund is higher than the TVPI for the Squire Fund because the Treble Fund has a higher gross IRR.
Based on Tseng and Collin's estimate of NAV next year, the estimate of carried interest next year is closest to:
Option A:$14.36 million.
Option B:$22.18 million.
Option C:$25.46 million.

Answer: A