In the first part of the present study, a thermal-hydraulic subchannel code hereafter called 'SUBTHAC' is developed to evaluate the enhancement effects of nanoparticles in core heat transfer. The first version of SUBTHAC (V1.0) can analyze the steady state flow of coolant with Al2O3, TiO2 or CuO as nanoparticles (other types of nanoparticles can be added by the user). Different output profiles can be selected such as fluid temperature, pressure and velocity for each subchannel, clad outside temperature for each fuel rod, axial and lateral mass flow, etc. SUBTHAC uses a dedicated algorithm to solve the subchannel equations and, unlike many other codes, allows for thermophysical parameters of nanoparticles to be a function of the temperature, leading to improvement the accuracy of results. Results computed by SUBTHAC for base fluid (pure water) are validated against those obtained by COBRA-EN code. In the next step, with the aim of validating the capability of nanofluid analysis of SUBTHAC code, its nanofluids results have been validated against reference CFD simulations. After the validation, comprehensive numerical comparisons are conducted to assess the enhancement of thermal-hydraulic parameters by using nanofluids. It is shown that, among Al2O3, TiO2 and CuO nanofluids with volumetric concentration in the range of 1-5%, TiO2-3% and CuO-3% are the best choices to increase fluid outlet temperature and decrease clad temperature, respectively. Using nanofluids with a concentration higher than 3% volumetric is not justifiable as the core pressure drop increases up to more than 20%.In the second part of the manuscript, some relevant remarks are put forward on the assignment of boundary conditions (BC, i.e. inlet velocity/inlet mass flux/inlet Reynolds number) and the adoption of reliable values for specific heat capacity of nanoparticles in operational temperature of NPPs. The effects of using the above boundary conditions and incorrect values of the specific heat (as adopted in the literature so far) are depicted by presenting some profiles of coolant and clad temperature. Selecting different BCs and incorrect values of specific heat for nanoparticles can jeopardize the results of calculations.