need advice :)

hi im new to this forum and need help. I have a 3rd gen 1989 honda prelude S. its all faded from the sun and an automatic.. well im buying a 1988 freshly painted manual 1988 prelude S for about 100 dollars, but the engine is blown.
Is it pricey to do a better engine conversion and will the lack of fuel injection effect that at all? Or should i just throw my 1989 S engine in that runs fine?

sorry if this has been asked before and for the total lack of car knowledge.