The "loose valve" diagnosis is bogus. The tapping is most likely tappet noise caused by excessive clearance. One or more of your hydraulic lifters are stuck, preventing automatic clearance adjustment. They can sometimes be whacked with a mallet to free up or by cleaning with something like Rislone, otherwise it's lifter replacement time.
At 116K, this engine should have plenty more life left in it, but you will need to maintain it regularly. I fgure a car always costs at least $200/month: either in average maintenance expense, or in regular car payments. You will also have extra to catch up on the "defrred maintenance" (aka neglect) of the prior ownwer.

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