You should be able to get the hood panel repainted for much less than $5k.

I would get a recommendation from your dealer, as a starting point. (Sometimes these are great recommendations, and sometimes they are not, but it's a good place to start.) Then I would also call around from the phone book, and see who specializes in Mercedes, BMW, Volvo, and other similar high-end cars. Get estimates from several.

If you decide to put in for an insurance claim, your agent may also have some good recommendations.

From your description of the damage, it sounds like your hood will likely be repainted in entirety, or in spots and blended across the rest of it. They may also want to blend it into the panels over the wheels. They shouldn't need to go back behind that.

Good luck!

Roger