I have an 89 245 non-turbo and I failed emissions almost the same as your 740T did. Checked a bunch of things and swapped some stuff that I had spare used parts for. One of the 240 members suggested replaceing the Coolent Temp Sensor. I had a used one of those so I figured it was worth a shot. Was a real pain to replace it (3.5 hours of back breaking work) as the CTS is between the 3rd and 4th cylinders under the intake manifold. After replaceing the CTS my HC & C0 was next to none and NOX was low as well. If you got HC & C0 readings over 70 & 50 then swapping the Cat won't help you much and cost you some $$$. My 245 MPG was better as well after changing the CTS and it's running much better.
My 245 has over 279K miles and has the original engine and Cat. Converter...
There's my two cents...
Best of luck...
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Volvos4me4ever 1989 245 278K miles still going strong, 1992 745 Turbo 121K miles real nice!
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