Residual Income Calculation for Tech Innovations

Consider a company named Tech Innovations that has a current book value of equity of $6,000,000. The company is expected to generate a net income of $900,000 for the upcoming year. The required return on equity (ROE) is assumed to be 10%.

Using the Residual Income Valuation method, Tech Innovations will calculate its residual income to assess whether its stock is undervalued or overvalued. The formula to calculate residual income (RI) is:

RI = Net Income - (Required Rate of Return * Book Value of Equity)

Based on this formula, what is the projected residual income for Tech Innovations?