Exergy thermodynamics is employed to analyze a binary ammonia water mixture thermodynamic cycle that produces both power and refrigeration. The analysis includes exergy destruction for each component in the cycle as well as the first law and exergy efficiencies of the cycle. The optimum operating conditions are established by maximizing the cycle exergy efficiency for the case of a solar heat source. Performance of the cycle over a range of heat source temperatures of 320-460degreesK was investigated. It is found that increasing the heat source temperature does not necessarily produce higher exergy efficiency, as is the case for first law efficiency. The largest exergy destruction occurs in the absorber while little exergy destruction takes place in the boiler.