Question

In Finance impact : what is mission first and last approaches.? what is the benefits of this concept? with example

Answer 1

Mission first approach- ( benefits)

• These are the investment tools used to attract foreign investors for long term capital growth in terms of private equity and real estate.
• It will be helpful for the large scale organisations to improve their financial stability by increasing working capital management.
• It prioritizes on social and environmental development for better financial returns.
• This approach initiated carbon bond funds to regulate environmental growth. So that corporations will be able to maximize their net earnings. As a result they can meet short term debt obligations.
• Example- RIL Ltd. utilizes mission first method to sell carbon bonds to the investors. It increases the price of bonds in the stock market. It helps reliance industries to reduce their current account deficit.

Mission last approach-

• Its a long standing approach regarding research about financial investment options and market volatility. So that investors will get updated information about their investment.
• It uses discounted cash flow method to calculate the rate of interest effectively.
• It estimates present worth of investment for a project and gives clear idea to the clients. So that true financial position can be predicted and risk factors will be mitigated.
• Example- Adeco ltd applies this approach for better investment portfolio research and annual revenue generation. Hence they are able to maximize their returns in 2017 to $2.3 billion by controlling market volatility.

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