Final answer:
The capital investment evaluation technique described by the given characteristics is the payback period. It closely relates to NPV, is easy to understand, but can lead to incorrect decisions for mutually exclusive investments and useful when funds are limited.
Step-by-step explanation:
The capital investment evaluation technique described by the given characteristics is the payback period. The payback period is closely related to NPV (Net Present Value) as it also considers the timing of cash flows. It is a simple and easy-to-understand method that measures the time it takes to recover the initial investment. However, it may lead to incorrect decisions when comparing mutually exclusive investments, and it can be useful when the available investment funds are limited.