Center Console Boats And More

Short Block, Long Block, New or Anchor?

I have a Volvo Penta 135hp inboard in a 24 foot '98 Godfrey Aqua-Patio pontoon boat. I lost the impeller and overheated the engine. Compression tests in #2 indicated head work was needed, so I did it. After machining the head, I still don't have good compression. The person doing the work suspects a cracked block.

1. Should we have known that before machining the head?

2. What option is best at this point and are these good prices (includes work done to this point)? His suggestions are:

-Short block for $3500 (saving my newly machined head) and a 6 mo warranty
-Long block for $4000 and an 18 mo warranty
-Brand new for $5000 (or more)
-Sell the boat as is for???

Thanks

t-Dub