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I think that is too much.
Rebuilding alternators is not rocket science, and I'm sure there are a lot of competent rebuilding shops in your area. You should be able to have it rebuilt, cleaned up, etc. so that it comes back looking and working like new for less than $100.
Try calling some of your local Porsche repair shops and see if they will give you a recommendation (they might not, because they would rather take it to the rebuilder themselves, have it done for $60, but charge you $250!).
If you can't get a recommendation, I'd just go with the Yellow Pages, and with an alternator repair shop that has been around for a while.
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