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2nd opinion and repair/replace what went wrong with your current engine...some thing does not add up, that it is "totaled"....

Your are right, most mechanics/yards are not going to risk their time and money on a rebuild/refurb when the margin and warranty of a new engine may be at risk. $6-10K at least, so I would even get a third opinion before I lay out that kind of money on a +30 year old boat
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