You are asking the 64,000 dollar question.
It could be done on your machines, but don't complain when your motor/circuit board/spindle bearings/gears give up the ghost whilst trying to make it.
That is why machines sizes go up in stages, small machines are usually for making small pieces, medium machines for medium and small bits, and big machines for everything. If it was me making the decision, I would say that engine really requires a medium sized machine to make it with any ease.
Just because a chuck on a lathe can hold a large piece doesn't necessarily mean the lathe will be able to machine it safely and easily without doing damage. All those people who say fit a 5" chuck to a mini lathe, in all honesty, are having delusions of grandeur, they are lucky that the skinny spindle hasn't snapped off before now, without doing any machining at all.
Look to what your machines can safely handle, and make parts and engines within those limits. Later on, when you are a lot more experienced and enjoying what you are doing, then upgrade your machinery to take on larger projects.
John