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FabulousPhill said..
The answer is a clean propeller and clean hull. Then look at the number of blades and the diameter.
+1. Clean it up, first. Its way cheaper than replacing the engine and prop. I'm guessing $15K to $20K, when you allow for all the stuff you don't know about yet. That's new engine (say $9K), new prop (say $3K), new shaft (say $0.5K, because Murphy dictates that the taper for the new prop will not fit the old shaft), new electric controls, new throttle controls, adjustments to the engine beds, stuffing around re-routing the water lines, fuel lines, exhaust pipes, wiring, labour and possible slipping (because Murphy will demand that you replace the old sea-cocks, too).
I've started down the road of reconditioning my engine, and found some horrible stuff when I took the old engine out. I'm currently thinking about what to do with the engine beds, but waiting on a diagnosis on my old engine. Best outcome will be a reconditioned 8HP (or 10HP - its ambiguous) single-cylinder Bukh, which is just fine for pushing the boat in and out of the harbour, and some pedestrian motor-sailing in my 28ft Cavalier. The replacement of the broken bearing bracket might reduce the noise, too.