E34 No Holds barred project car?

[Paragon]

I have an E34 Touring and I would love to make it into a project car. That car is in fabulous condition. Recently, I went looking at the new touring, and it doesnt have the same size and feel. So, I propose a project. Instead of buying a new car, I would put the money into a project. A V8, transmission and diff. New paint, new seats, suspension, etc.

Opinions please? How would you build this car?