The advantages of the payback method of project analysis include the bias towards arbitrary cutoff point.

Payback Method

An investment appraisal technique that calculates the time required to recoup the cost of an investment.

Project Analysis

The process of evaluating the viability, profitability, and risks associated with a proposed project before proceeding.

Arbitrary Cutoff Point

A subjective point or threshold determined without any criteria based on clear or objective reasons, often used in decision-making processes that lack a clear rationale.