Can only see web page if project url in project properties is set to iis express and http://lcalhost:portnumber

I have a web application project using VS2013 and sitting on Windows Server 2012 R2. I wanted to set up a development website in order to let people logging on the website to see the website. It won't even compile properly if I change IIS Express to Local IIS and the Project Url from localhost:portnumber to 127.0.0.1/Projectfolder Am I missing something? I would appreciate if you have any suggestions.