Given a contractor EAC which projects a TCPI of 1.05 while the contractor's historical CPI has been .90, select the best answer.

The contractor's EAC is reasonable because it has a TCPI that is higher than the historical CPI which means the contractor must improve future performance to achieve this EAC.

The contractor's EAC is pessimistic because its TCPI is higher than the historical CPI which means it projects worse future cost performance compared to the historical CPI. It can be considered reasonable because its TCPI is less than plus or minus 0.05 of the CPI.

The EAC is reasonable because the TCPI of 1.05 is significantly better than the demonstrated historical CPI of 0.90.

The contractor's EAC is optimistic because it has a TCPI that is higher than the CPI which means the contractor must improve future performance to achieve this EAC. It can be considered unreasonable because it exceeds the CPI by more than 0.05.

The contractor EAC can be considered reasonable because its TCPI exceeds the cumulative CPI by greater than .05