Final answer:
The capital investment evaluation technique described by the given characteristics is the payback period.
Step-by-step explanation:
The capital investment evaluation technique described by the given characteristics is the payback period. The payback period is easy to understand as it measures the time required for an investment to generate enough cash flows to recover the initial investment. It is biased towards liquidity because it focuses on how quickly the investment can generate cash flows. The payback period requires an arbitrary cutoff point, usually determined by the company's management. Finally, the payback period ignores the time value of money, meaning it does not consider the potential value of cash flows received in the future.