Risk and Capital Budgeting

    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.