Calculating Residual Income for Alpha Solutions

Alpha Solutions is a mid-sized technology firm that has been experiencing steady growth. For the current fiscal year, the company reported a net income of $1,200,000 and has a book value of equity of $6,000,000 at the beginning of the year. Alpha's cost of equity is estimated at 10%. Analysts predict that the firm's future earnings will grow at a constant rate of 5% annually for the next 5 years.

The residual income for Alpha Solutions in the upcoming year can be calculated as:

Residual Income = Net Income - (Cost of Equity * Book Value of Equity)

Using this information, what is the estimated residual income for Alpha Solutions for the next fiscal year?