8.Wrtsil, with headquarters in Helsinki, Finland, advertises the operating flexibility of its electric power generating plants: "If you need to relocate, modular construction will make the move easier.Or you can choose a Wrtsil floating power plant or a Wrtsil Power Module and become truly mobile."

(a) How is the specificity of an investment related to sunk costs?

(b) Explain the concept of specific investments in relation to building an electric power generation facility

(c) Is the problem of holdup more or less serious for investments with alonger payback period?

(d) Do you expect the demand among investors for floating power plants to be greater or less in countries with high political risk?Explain why.