Sta. Ana Productions is considering the purchase of a new movie camera, which will be used for major motion pictures. The new camera will cost P30,000, have an eight-year life, and create cost savings of P5,000 per year. The new camera will require P700 of maintenance each year. Sta. Ana Productions uses a discount rate of 9 percent.

5) Compute the net present value of the new camera.

6) Please determine the payback period.