Calculating Residual Income for XYZ Corporation

XYZ Corporation is a publicly traded company that has reported the following information for the last year:

- Net income: $5 million

- Total equity: $50 million

- Required rate of return: 10%

- Book value per share: $20

If XYZ Corporation's return on equity (ROE) remains constant and the company retains all of its earnings, what is the estimated residual income for the next year?