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In this article, we quantify the effects of heat transfer between the compressor and the expander on the Coefficient of Performance (COP) of the conventional mechanical vapor compression cycles. Thermodynamic analysis revealed that using such a device can improve COP from a cycle that uses an isentropic compressor and an isentropic expander by as much as 20%. The improvement was significant in the case of natural refrigerants (e.g., CO2 and ammonia), with the potential of making them a more competitive option for future HVACR applications.