Edwards Industries sales are expected to increase from $5 million in 2016 to $6 million in 2017, and its assets totaled $3 million at the end of 2016. Also, at year-end 2016, current liabilities were $800,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $400,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.60 for every $1.00 increase in sales. Paladins retention ratio is 40%. If the firm does not need to raise funds externally, what is the projected net income for 2017?

L₀= ??? Million

payout ratio= ???

Net income= ??? Million