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A working theory of two-component two-phase (gas-liquid) nozzles, developed as part of Phase I, was used to conduct parametric performance analyses over a wide range of flow conditions and for varied fluid properties. Droplet breakup and the interface transport of momentum and thermal energy were considered in the analyses, but mass transfer and wall friction losses were excluded. Results from the parametric analyses compare favorably with experimental data and other theoretical analyses available in the literature. The sensitivity of the predicted nozzle performance to the assumptions concerning the droplet characteristics was examined, and criteria were developed for optimum nozzle designs based on the parametric analyses. A simplified procedure was developed for the quick estimation of the major dimensions for two-phase nozzles. Finally, the work extraction potential of two-phase nozzles was examined in terms of their performance criteria and system integration characteristics.