Final answer:
The technique in question, characterized by its relation to NPV, ease of comprehension, potential for misguidance in mutually exclusive investment comparisons, and usefulness under capital constraints, is the Internal Rate of Return (IRR).
Step-by-step explanation:
The capital investment evaluation technique described by the following characteristics is the Internal Rate of Return (IRR). It is indeed closely related to Net Present Value (NPV), and is known for being easy to understand and communicate the profitability of potential investments. The IRR is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. However, it may lead to incorrect decisions when comparing mutually exclusive investments because it does not account for the scale of the investment. Furthermore, IRR assumes that the project's positive cash flows are reinvested at the IRR itself, which might not be realistic. Lastly, it can be useful when available investment funds are limited because it can rank projects by their rates of return.