Anything is possible, the question is if it is worth your time and money. I have seen someone swap an engine out of a 2006 M3 into a 1989 M3. Was it really cool and fast? Yes. Was it really worth spending almost $20k for it? No. For that kind of money he could have built up an impressive euro S50 and blown away his current setup.
2004 BMW 330ci Silvergray Sport Package, Cold Package, Xenon Headlamps, Premium Package, 6 Speed Manual, Build Date 9/03
Sold - 2003 325i Sedan Japanrot 5 Speed 8k Xenon Headlamps Build Date 11/02