Valves bent after timing belt broke..better to repair valves or replace the engine with a used engine? 94Honda

I was told if I replace the valves, the car will never run properly. Will have to constantly add oil and I will have to deal with black smoke coming from the exhaust. It is a 94' Honda Prelude. Perfect condition otherwise. This will cost approx. $1400. On the other hand replacing the engine will run me almost $2500. I found one that has 40,000 miles on it. I would like to have the car last me another 2-5 years. Any thoughts, experiences, suggestions? thanks very much!