Describe the concept of risk as it pertains to investment decisions.

Part 1: Prior to beginning work on this discussion, read Chapter 12: The Capital Budgeting Decision in your textbook.Capital budgeting plays an important role in planning for capital expenditures. Regardless of one’s role or department in an organization, it is important to be familiar with the capital budgeting process in order to determine the financial viability of any projects or proposals.Your textbook presents three primary methods financial managers use to rank capital investment proposals. Summarize each method, and assess its advantages and disadvantages.Part 2:Prior to beginning work on this discussion, read Chapter 13: Risk and Capital Budgeting in your textbook.Acquisitions are often risky investments for a company. On December 1, 2017, Deere & Company decided to acquire the stock and certain assets of almost all of Wirtgen Group Holding’s operations. For this discussion, address the following:Describe the concept of risk as it pertains to investment decisions.Explain how companies measure the level of risk related to a given investment decision.Discuss risk factors companies should consider with acquisitions.Explain which of these risk factors you see at play in the Deere & Company acquisition.This is the book :Block, S. B., Hirt, G. A., & Danielson, B. R. (2019). Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com/