Equivalent Annual Cost (EAC) is not a method of evaluating capital budgeting projects. It is a method used to compare different alternatives with different cash flows over different time periods.

The time value of money is the concept that money has a higher value in the future than it does today. This is because money can be invested and earn interest, which increases its value over time.

The discount rate used in capital budgeting is the rate of return on a risk-free investment. This is because the risk-free investment represents the opportunity cost of capital, which is the return that could be earned by investing in a risk-free asset.

The payback period of a project is the time it takes for the project to generate enough cash flow to cover the initial investment.

The net present value (NPV) of a project is the difference between the present value of the project's cash inflows and the present value of the project's cash outflows.

The internal rate of return (IRR) of a project is the discount rate that makes the net present value of the project equal to zero.

The benefit-cost ratio (BCR) of a project is the ratio of the present value of the project's cash inflows to the present value of the project's cash outflows.

Operational risk is not a type of risk that can be associated with a capital budgeting project. Operational risk is the risk that a project will not be able to generate the expected cash flows due to operational problems.

Sensitivity analysis is not a method of mitigating risk in a capital budgeting project. Sensitivity analysis is a method of assessing the impact of changes in input variables on the project's outcome.

The project's social impact is not a factor that should be considered when evaluating a capital budgeting project. The project's social impact is the impact that the project will have on society.

A marketing campaign is not a type of capital budgeting project. A marketing campaign is a short-term project that is designed to promote a product or service.

Sunk cost is not a type of cost that should be considered when evaluating a capital budgeting project. Sunk cost is a cost that has already been incurred and cannot be recovered.

Enhanced safety is not a type of benefit that should be considered when evaluating a capital budgeting project. Enhanced safety is a social benefit that cannot be quantified in monetary terms.

Statement of retained earnings is not a type of financial statement that should be used when evaluating a capital budgeting project. The statement of retained earnings shows the changes in a company's retained earnings over time.

Break-even analysis is not a type of analysis that should be performed when evaluating a capital budgeting project. Break-even analysis is a method of determining the sales volume at which a company will neither make a profit nor a loss.