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Dan's suggestion below is a good one,
"The ignition switch may be the problem, check for 12 volts at the blue/yellow (I think) wire at the starter solenoid with the key on the first position."
But the key has to be in the third (cranking) position not the first.
Also, you'll find it easier to test for cranking voltage (Test light recommended over digital meter) at the "Service Socket", with the Key in the cranking position.
The location of the 240 service Socket is shown below, partly hidden behind the dipstick tube.
240 Starter Service Socket

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Bruce Young, '93 940-NA (current), 240s (one V8), 140s, 122s, since '63.
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