Post #2
All things being equal, it's easier and cheaper to achieve a given power figure with a larger capacity engine than a smaller one.
Getting an XU7 to circa 2 litres is a significant expense in its own right, with new liners, pistons, and crank. The reason that it's used in competition cars is that it's lighter than the iron block 2.0 litre engines, and the cost factor is making it 2 litre is comparitively insignificant against the rest of the costs building and running of the car.
The cheapest way that I can think to achieve 240hp using an engine that'll go into a 306 would probably be using a 2.0 8v Turbo engine, changing the turbo and running aftermarket management. Depends what you're doing of course, as for competition use, a turbo will likely bump you into an uncompetative class.
________________________________________
1989 Eunos Roadster // 1992 Peugeot 205 GTi-S 1.9 // 1999 Peugeot 306 HDi Meridian