Which of the following factors will be considered when determining the amount of depreciation to be used in the determination of actual cash value?

The determination of actual cash value (ACV) typically involves assessing the current worth of a property while considering various factors that contribute to its depreciation. In this context, normal life expectancy is a key element because it relates to how long an asset is expected to be useful. This expectation assists insurers in estimating how much value the item has lost over time due to use, wear and tear, and age.

When the normal life expectancy of an asset is taken into account, it allows for a more structured approach to depreciation. If an asset is expected to last for a certain duration, the value diminishes progressively until it reaches the end of its useful life. This calculation reflects a fair representation of what the asset is worth at a specific point in time, leading to a more accurate ACV determination.

In contrast, while other factors like the purchase price or accrued accounting depreciation may play a role in valuation, they do not specifically account for how the passage of time and usage impact the actual market value of an asset as directly as normal life expectancy does. Sentimental value also is not considered in insurance valuations, as it is subjective and does not influence the market or replacement cost.