Compute the net present value of the new camera

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Reference no: EM132632660

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.

Question 1: Compute the net present value of the new camera.

Question 2: Determine the payback period.

Reference no: EM132632660

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