Water pump seizure damaged 2 cylinders; now what?

[ajhuntsman]

My 2003 XC90 T6 AWD has 142k miles, and is worth about $5200 according to Edmunds.com.

16 months ago, at 111k, I replaced the water pump and timing belt. A few days ago, the water pump seized up, damaged the timing belt, and most importantly, cylinders 2 & 4.

A used engine w/ 124k miles is about $4700 installed.

Since I've put $5300 into it over the past 16 months, and it's value is $5200, I don't feel that investing another $4700 is reasonable.

What are my options??? Salvage? Trade-in?

Help.