I agree with Smokedawg and the previous posts.
Rear gears, installed, run about $400., a shifter is $200., headers will run around $200., underdrive pulleys cost around $100.
Figure a 'ballpark' figure of $1000. for basic mods, depending on installation costs.
You would still have $1000. left and a set of used GT40 heads might be feasible, with a valve job and new guides, etc. Less than $1000. Add a 65mm TB and a 190 gph FP and you're in business, with a 13-second Mustang.
Your bottom end should be fine if the engine was maintained, but a compression test will tell you for sure. Do it to avoid nasty surprises later.
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