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To follow Wayne's point, I think you can swap your pallet motor & trans into your 912 without too much issue? Turn it over by hand some and then see what happens. Being just a crash motor that supposedly ran, you might be surprised...
23K is way too high. Years ago, i bought my freshened up 3.6 varioram for 12. Not gonna work well with a 902, but as a reference point.
Also, to be frank if you can't figure out how to get the swap motor running, maybe you would then decide a full swap with rebuild isnt for you. Finally, a bit of advice from a dad... you can keep the hierloom drivable for your young ones one day with the 4 cylinder. Let them take you for ice cream... something I can never do with my 300+ hp car...
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