Two machines have data as shown below. Using an incremental internal rate of return, which machine should be selected:

	Machine C	Machine D
Initial cost	$550,000	$987,000
Life in years	2	3
Salvage after life	22%	32%
Benefits per year	$384,000	$434,000
Costs per year	$162,900	$196,800
MARR	8%
Inflation (increase in all costs)	5%
Increase in benefits	9%