In one of the topic test questions under derivatives regarding convenience yield, it asks:

Does convenience yield affect futures price?

Obviously it does according to the following two formulas:

FP = *S*_{0} (1+*r*)* ^{T}* + FV(NC), where FV(NC) is the future value of

**Net Costs = storage costs – convenience yield**

FP = *S*_{0} (1+*r*)* ^{T}* - FV(NB), where FV(NB) is the future value of

**Net Benefits = yield on asset – convenience yield.**If NB is positive, it will decrease the future price.

My confusion is related to which formula to use? how will I know if the convenience yield that is referred to by the question will lead to an increase/decrease of the futures price?