Yep. Should be fine. A little tougher the other way around, as you'd have to move the distributor to get a 740 B230F into a 240. Use the 740 manifolds and sensors.
Yes to the auto transmission (basically the same part), but you don't want to do it (if unless you have to): The 240 transmission does not have a lock up torque converter, the 740 one does. Lock-up converter is both quieter, smoother, pleasurable, and more fuel efficient on the highway.
-Ryan
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Athens, Ohio 1987 245 DL 312k 1990 245 DL 133k M47, E-codes 1991 745 GL 290k (Girlfriend-mobile) Buckeye Volvo Club
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