If the two $P$’s were distinct (they could have different subscripts and colours), the number of possible permutations would have been $5! = 120$
For example let us consider one permutation: $P1LEAP2$
Now if we permute the $P$’s amongst them we still get the same word $PLEAP$. The two $P$’s can be permuted amongst them in $2!$ ways.
We were counting $P1LEAP2$ and $P2LEAP1$ as different arrangements only because we were artificially distinguishing between the two $P$’s.
Hence the number of different five letter words that can be formed is: