Which of the following statements about the internal rate of return (IRR) capital budgeting technique is correct?

		It is the discount rate that equates the present value of a project's cash outflows (or costs) with the present value of its cash inflows.
		It is the discount rate at which the net present value of a project is negative.
		It is the rate of return at which a project's payback period is the shortest.
		It is the discount rate that should be used to evaluate a project with multiple cash outflows.