This paper presents a parametric analysis of a combined power/cooling cycle, which combines the Rankine and absorption refrigeration cycles, uses ammonia–water mixture as the working fluid and produces power and refrigeration, while power is the primary goal. This cycle, also known as the Goswami Cycle, can be used as a bottoming cycle using waste heat from a conventional power cycle or as an independent cycle using low-temperature sources such as geothermal and solar energy. Optimum operating conditions were found for a range of ammonia concentration in the basic solution, isentropic turbine efficiency and boiler pressure. It is shown that the cycle can be optimized for net work, cooling output, effective first law and exergy efficiencies. The effect of rectification cooling source (external and internal) on the cycle output was investigated, and it was found that an internal rectification cooling source always produces higher efficiencies. When ammonia vapor is superheated after the rectification process, cycle efficiencies increase but cooling output decreases. Copyright © 2010 John Wiley & Sons, Ltd.