My '96 SEI 174 BR has the 4.3 Merc 180 hp. More than enough power, although a little stern heavy. The 3.0L would probably be fine in this 2300#, 16'9" boat. Per above comments, the 3.0L may be a bit under powered in a larger boat. ....depends on how you intend to use it. Pulling a skier or boarder out of the water with several passengers may take a while.
ps: Larsons have the reputation of a cheap starter boat. Maybe so, but I've taken care of mine...particularly keeping the hull/transom structure dry. It's still a great boat. Cobalt, Bryant, Larson will all rot away if neglected.