[Christian 94 VR4]

I bought a 94 VR4 with 115K for $6200 about 2 weeks ago. At the time i thought it was a good deal until 3 days later when i heard a kind of knocking noise coming from the engine. I brought it in to a dealer and they said the timing belt has jumped time. They said my valves must be bent because they couldnt even replace the timing belt it was so bad. They still havent taken off the heads to look at the extent of the damage because he said its gonna cost me $800 just to take off my heads and look at my valves...as of right now this very moment the car starts and will run and is even drivable the runs very noisily and with lots of power loss. Dont worry im definetly not driving it. What should i do? Get my valves replaced and risk finding more damage or just buy a new engine for $4000 and be safe????? Im strapped for cash, I just bought the car!!