How do you determine whether to use future or present value?

To determine whether to use future or present value, consider the context of your financial analysis. If you want to find the worth of an investment or cash flow at a specific point in the future, use future value. Conversely, if you need to assess the current worth of a sum that will be received or paid in the future, apply present value. The choice also depends on whether you are calculating growth over time or discounting future amounts back to today.