6) A certain music studio costs $750,000 to set up. During the year, its total revenue is $200,000, and its total costs (not including depreciation) are $100,000, and depreciation is $50,000. Assume that revenue, costs, and depreciation are expected (with virtually no uncertainty) all will be stable into the future. What is the payback time of this investment? a) 3 years b) 7.5 years c) 15 years d) 20 years 7) A student takes the summer off and can do one of several options. Work in real estate and earn $8,000; work at beach and earn $5,000; gig and write and earn $4,000; chill out and home and earn nothing, or travel, which will cost $6,000. Regardless of what they do, they face another $5,000 of living expenses during this time. What is the opportunity cost of travelling this summer? a) $6,000 b) $11,000 c) $14,000 d) $19,000 8) Which of the following types of income would be considered income from property but not capital gains? a) A band earns money by selling its own CDs at a show for $20 each. b) A bank earns money by lending money to credit card holders, who have to pay it back with interest. c) A homeowner sells their primary residence for more money than they paid for it. d) A stockholder of a company receives an unexpectedly large dividend check.