SA Logistix is a transport company that operates across South Africa. The company has a fleet of specialised ve foodstuffs, chemicals, and hazardous products. The company is preparing for the annual insurance review. The Board of SA Logistix has instructed the Chief Fina appropriate risk financing strategies for the fleet. To determine the risk financing alternatives, the CRO recommer be calculated for the fleet. The historical financial data of the fleet is incomplete and certain critical components need to be calculated. Clai per accident and for that reason it is important to include claims inflation in the data. For the purpose of this exer effect of exchange rate fluctuation. The board of Logistix stated in the last annual report that the company adopt effect on claims inflation as 40% of claims cost is in foreign currency. Refer to the table for the annual inflation rate and appropriate exchange rate. The historical information available Question Calculate the total cost for the year 2013 by incorporating the information provided in the table above. a. R2 000000 b. R3 000000 C. R5 450000 d. R5 000000