I'm sorry, but this question, like most is poorly written, executing and thought out. How do you expect us to answer this question when you A) Haven't specified the model B) Have specified the reason why you want the E46 S54 (I6) Engine in your 5-Series (E60) which has the M54 (I6) or a N62 (V8) Engine?
First, the S54 engine is tuned to 333 bhp. This is a really powerful engine; especially well it is only installed in a lightweight coupe. If you put that engine in your very large E60 Sedan, you wouldn't be getting the same performance.
Because you failed to specify your engine model, I have no idea what you want from this question.
If you have a 525i (E60) with the I6 and you get only 218 bhp, then I can understand upgrading to the S54. But that will cost you over $5,000 to do, for that money; you can begin to tune your vehicle to get close to 300 bhp, if done correctly. If you have 530i, (E60) the logic still follows. The 530i has a 260 bhp engine which is closer to the performance on the S54, but you're still heavy and won't even match it.
But if you have one of the V8 models which range from 306 bhp to 370 bhp, than it is illogical to put the S54 Motorsport engine into your 5-Series.
My advice. This is a illogical idea and will void your warranty, not give you the performance you want to see, nor the economy.
How can you do it? First you justify it, and then you find someone to do it, because a 5-Series engine is probably the hardest engine I have ever worked on....ever. And putting in a less advanced (but, in my opinion, superior) engine in your technologically state of the art 5-Series just seems stupid. You cannot do this on your own unless you are a very competent BMW mechanic, but you're asking this question, so you're not. I'm sorry, but good luck.
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