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Glorious Victory: This +2 chaotic human-bane
battleaxe is a self-identifying item and was once a simple masterwork
weapon carried by a young devotee of Tempus. After several successful battles
as part of a mercenary company he became an adventurer and had a Thayan
enclave wizard give his weapon its first enhancement bonus. This unknown young hero eventually
become a divine champion of his faith and was slain in battle with duergar
in the Underdark. One of the gray dwarves claimed the weapon and had his
brother give it the human-bane property and its second enhancement
bonus. The axe was eventually given to the leader of the duergar clan to
pay a debt. That leader had the weapon stolen from his trove by an adventuring
human rogue, who sold the weapon to the church of Tempus, where it was
given then chaotic property and the ability to cast cure light
wounds twice per day. Since that time it has been carried by several
favored sons of the Lord of Battles. The haft of this weapon is made of
Suth-wood banded with iron. The blade is long and is incribed with the
symbol of Tempus and inlaid with red enamel.
Caster Level: 8th; Prerequisites: Craft Magic Arms and Armor, chaos hammer,cure light wounds,summon monster I, creator must be chaotic; Market Price: 51,810 gp; Cost to Create: 26,060 gp + 2,060 XP.
The item has a base plus of +2, chaotic is +2, bane is +1, for a total of +5, for 50,000 gp.
Cure light wounds twice per day is spell level 1 x caster level 1 (the minimum) x 1,800 (command word) divided by (5/2) (twice per day), for 720. Any additional properties on a magic weapon that aren't plus-based have their cost doubled, so this becomes 1,440, which I'll round off to 1,500 to make the math easier.
Total magic price is 50,000 + 1,500, or 51,500 gp.
Half of that is the cost to create, or 25,750 gp.
1/25 the magic price is the XP cost, or 2,060.
Add in the 310 gp for a masterwork battleaxe and you get the final costs. By the way, "self-identifying" is a property magic weapons can have in the Forgotten Realms setting. It basically means that you know what the weapon's properties are if you pick it up. Like the ability to shed light, this is decided when the item is created, can never be changed, and does not cost anything.