Must show work!

A certain hedge fund opened with $150 million dollars to invest. Their benchmark for receiving an incentive fee is to beat LIBOR by 1%. We will assume that the benchmark amount (including the 1% margin) is 4% for each of the first two years. If the fund declines by 15% in the first year, how much would the hedge fund need to earn in year 2 in order for an incentive fee to apply once again?

21.47%

15.00%

23.56%

27.06%