Why is discounting the future value of money to its present value important in financial analysis?

Question $9$ options:

To calculate the interest that will be accumulated on a sum over a fixed period, to forecast future earnings.

To determine the present value of future cash flows, reflecting the time value of money and providing a basis for fair financial comparisons and decisions.

To adjust for the potential increase in money supply and its effect on inflation rates.

To evaluate the risk associated with receiving money in the future rather than today.