We could do a short block for considerably less than $2700. All would depend on your core. I probably have two or three cores so it wouldn't matter, but if you are trying to get a feel for price, try asking your MB dealer for the price of new short block (or just the crankshaft if a short block isn't available - the crank alone is probably more than $2700)
Most of the work on a real rebuild for that guy will be in the head work and final assy/installation. We would get around $4500 for all, which would include such peripherals as radiator testing, motor mounts, hoses, carb repair/adjustments, etc (making it work).
Bosch Master, ASE Master, L1
33 years MB technician