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Don't need to go that big. Friend of mine dyno'd 989 rwhp in his turbo 302 in his fox body with a C4. He's getting close to breaking that 9 second mark.
The newer motors don't just magically get better gas mileage..They need EFI and overdrive trans to do so which you can adapt to an older motor that actually fits in the car....
That's true but the 5.0 gets its power and gas mileage from great 4V heads, intake, and VICT, and you can put that on a pushrod motor. That's the magic.
Its not just the overdrive trans it how many gears it has too,The newer mustangs run a 5 or 6 speed auto now?More gears the lower then can keep the rpms which saves fuel.