Final answer:
The capital investment evaluation technique in question is the Internal Rate of Return (IRR), known for its simplicity but also for its potential pitfalls in certain investment comparisons. Therefore correct option is D
Step-by-step explanation:
The capital investment evaluation technique described by being easy to understand and communicate, potentially resulting in multiple answers, and capable of leading to incorrect decisions when applied to mutually exclusive investments is the Internal Rate of Return (IRR). The IRR is a popular method because it simplifies complex investment decisions into an expected percentage return. However, it can be misleading when comparing projects of different scales or durations, as it does not take into account the magnitude of the cash flows or the overall investment size.