I don't have direct knowledge of the
Volvo MD7A tach circuit but I do know a little bit about some electrical/electronic systems.
From your description it would seem the old Volvo circuit had a two terminal tach sender on the
engine (neither of which is connected to the frame of the sender) and these was connected to two terminals on the tach meter and the polarity of these two wires didn't matter.
Also the new tach meter only has three wires which presumably are 12v
power positive, 12V negative and the tach sender wire.
If both of the above assumptions are correct, I would approach the
wiring this way.
Connect the tach meter
power wires (+ve and -ve) in the normal manner and then connect the tach meter sender wire from the tach meter to either of the terminals on the
engine sender and the other one on the sender to engine ground (i.e. 12V -ve). If that doesn't
work , reverse the wires on the terminals of the engine sender. If still no joy, perhaps the new tach isn't compatible with the Volvo engine sender.
What is the make / model of the new tach meter?