Newport Department Store is considering development of an e-commerce business. The company estimates that development requires an initial outlay of $1,470,000. Other cash flows will be as follows:

Year 1......... ($700,000)

Year 2......... $221,000

Year 3......... $750,000

Year 4......... $850,000

Year 5......... $940,000

Required

Assuming the company limits its analysis to five years; estimate the internal rate of retum of the e-commerce business. Should the company develop the e-commerce business if the required rate of retum is 12 percent?