We have a 1993 SCR 2700 that was just purchased this year (first time boaters), only 653 hours on the 7.4L mercruiser. While cruising on Lake Michigan with 1ft waves I saw three 2-3ft waves coming from the wake of another boat. We were cruising at 20 – 22mph with 3500rpm on the tachometer when hitting the waves at a 45 degree angle. A second or two later I looked at the tachometer and it was reading 4800rpm and the boat started slowing down. I turned around to look at the aft of the boat and there was a fountain of water coming up from the prop, it also sounded as the prop was sucking in air and cavitating. I immediately throttled back and took a look at the back to see if I noticed anything and all looked ok. When I tried to get back on plane the fastest I could go was 9-10mph at 3800rpm. If I increased the throttle I would not go any faster and the fountain would reappear. The engine ran very smooth, no vibrations and no grinding sound. I still had forward and reverse at idle speed so I was able to get it back into my slip at the marina. Looking at the transom with the engine off I adjusted the trim and trailer several times to make sure it was working and in the down position. I looked at the prop and noticed a slight ding on the end of one of the blades, very minor. I took the boat out again to see if I still had the problem, sure enough the same thing. Any ideas on what could be the problem?
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