An insured has replacement cost coverage. A 5-year-old roof is destroyed. A new roof costs $15,000. What is the Actual Cash Value (ACV)?

ACV requires applying depreciation to the replacement cost. To calculate ACV, you need: replacement cost AND the depreciation rate for the roof's age and material. A 5-year-old asphalt shingle roof might be 25% depreciated (5 years of a 20-year life = 25%), giving ACV of $15,000 × 0.75 = $11,250. But without the depreciation schedule and remaining useful life data, you cannot calculate this — hence 'cannot be determined without a depreciation schedule' is the most accurate answer on an exam testing conceptual understanding.