On December 31. 2021. Rhone-Metro Industries leased equipment to Western Soya Co. for a four-year period ending December 31, 2025, at which time possession of the leased asset will revert back to Rhone-Metro. The equipment cost Rhone-Metro $365,760 and has an expected useful life of six years. Its normal sales, price is $365,760. The lessee-guaranteed residual value at December 31, 2025, is $25,000. Equal payments under the lease are $ 100,000 and are due on December 31 of each year. The first payment was made on December 31, 2021. Western Soya's incremental borrowing rate is 12%. Western Soya knows the interest rate implicit in the lease payments is 10%. Both companies use straight-line depreciation or amortization.

Required:

1. Show how Rhone-Metro calculated the $100,000 annual lease payments.

Amount to be recovered (fair value)	365,760
Less: Present value of the residual value (25,000*0.68301)	(17075)
Amount to be recovered through periodic payments	348,685
n=4, i=10% PV annuity due factor	/3.48685
Lease payments at the end of each four years	100,000

I would like to know if my calculation is correct?