That block drain spigot is present on my 1981 240 and the 1994 940, so you should have it. 13mm open end wrench will loosen the fitting. It's brass, so go easy. Does not need much tightening to give a leakproof seal.
To fully drain the radiator, undo the lower hose at the water pump and bend it down, after removing the splash pan under the engine. Try to catch all your old coolant in a container and dispose of it according to your local codes. The stuff is deadly poisonous to small animals and humans. Trashes their kidneys.
You may have to refill the system with clear water, run the engine with heater set to hot, and drain again a couple of times to get a good flush. One draining won't do it as there are plenty of pockets where the old stuff has to be circulated or flushed out.
When refilling with new coolant those pockets will now have pure water occupying them. I pour in 100% pure antifreeze, equal to 1/2 the system capacity, then top up the reservoir to the "Min" point with distilled water, definitely not tap water. That way I'm sure of getting a 50/50 solution. Run the engine until the thermostat opens (radiator gets hot) with the heater set to hot, and check for leaks. All being well, I drain about one litre from the block drain, then pour that back into the reservoir.
I figure this gets the entire system, including the reservoir, to a 50/50 mix, and a few more run, cooldown, and start cycles will make sure.
Look also at this section of the FAQ:
http://www.brickboard.com/FAQ/700-900/Cooling.htm#DrainingEngineCoolant
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Son's XC70, daughter's 940, my 81 and 83 240's, 89 745 (V8) and S90. Also '77 MGB and some old motorcycles
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