EXERCISE $9-16.$ IRR and Unequal Cash Flows $[$LO $1]$ Newport Department Store is considering

development of an e$-$commerce business. The company estimates that development will require an

initial outlay of $$1,300,000.$ Other cash flows will be as follows:

REQUIRED

Assuming the company limits its analysis to $5$ years, estimate the internal rate of return of the

e$-$commerce business. Should the company develop the e$-$commerce business if the required rate

of return is $14$ percent?