1. February 18: Officials from Cullumber and Ivanhoe sign the contract. The contract was for $7.8 million. Cullumber is to design, manufacture, and deliver the 25 machines to Ivanhoe's operations centre in Duncan, British Columbia. Cullumber's management estimates that the design component of the contract would be valued at $523.000 if contracted for separately, while the machine construction component of the contract would be valued at $7.7 million if the machines were purchased separately. Cultumber agrees to provide a three-year assurance-type warranty for the machines, and the company's management estimates that the warranty claims would total $263,000 based on past experience. Ivanhoe agrees to pay a $1,610,000 deposit within 10 days of signing the contract and to pay the balance within 1 fdays of the equipment being delivered: 2. February 25: Ivanhoe pays the deposit specified in the contract. 3. March 28: Cullumber's engineering staff complete the equipment design and it is approved by officials from Ivanhoe. 4. May 18: Cullumber completes construction of the 25 harvesters. 5. May 20; The 25 harvesters are loaded onto Cullumber's trucks and are delivered to Ivanhoe's peration centre in Duncan later that day, 6. June 2: Ivanhoe pays the balance owing on the contract