Problem
SensLiving, Inc. is planning to buy a new factory for its space toilet manufacturing. Given current interest rates, they feel that they can afford about $4,000,000 for the factory. (to keep it simple, we'll assume the existing factory requires little refurb). Before purchasing an existing facility, they will explore the possibility of building. They can find a suitable lot for about $750,000-$900,000. At a minimum, they need a 10,000SF facility, with 7,000SF for high-tech manufacturing space and 3,000SF of office space. Currently office space building is about $200/SF and high-tech space is $500/SF.
How does Earned Value give a clearer picture of a project's performance than simple budget vs. actuals?