It can all be made to work, but you need to invest a lot of time and effort (and potential cost) into the setup. The simplest solution is probably to retain the 28mm carbs and being prepared to spend a day at the dyno. I'd expect to see "high 40s" with MC18 barrels and heads on an MC16. Certainly more is possible, if you have the time and knowledge. The HRC TT-F3 spec is 65ps still on 28mm carbs, for example, but everything is different to stock.
A forum member (jeff350lc) did an MC18 conversion on one of his MC16s (88 barrels & heads/32mm carbs/MC16 HRC exhausts) which saw, if I remember correctly, about 53hp on the dyno. We never tested it though, so don't have any run data, but you're not going to just magic up the 60hp of the later models though without considerable effort, which includes opening up the bottom-end.
It's a tricky one, because in true Honda fashion, everything is very well optimised as stock for both the 1987 MC16 and 1988 MC18, so while a lot is physically interchangeable, it's not necessarily compatible.
Probably not what you want to hear, sorry.
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Andy.
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