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If you plan to have 5 people and water ski, you should probably select a 4 blade prop for better grip.
A good all-around prop for cruising would be a BPR Viper in 17" of pitch.
The engine should be mounted so the top engine bolts are in the third hole down from the top. There will be two empty bolt holes above the bolts. The bottom bolts will be in the middle of the slots.