I believe that Cracow would be too busy and expensive, unless there is a nice suburb there with good prices
120 000 US$ is quite a lot , i would recommend Krakow because although it is more expensive ,Krakow has everything ,albosultely everything ( Culture, Active Business life, Leisure activities, shops restaurants architecture, museums etc etc)
I believe that Tarnow would be 30 % cheaper than Krakow depending whare and what you buy but it will take 10-15 years to Tarnow in my opinion to reach what Krakow can offer if it ever does so it is up to you ,if you are prepared to be patient...