Discounting at the project's internal rate of return implies that cash inflows can be earn the rate earned by the investment being evaluated. In contrast, the present value method implies that cash inflows are reinvested at the discount rate being used, which is usually the weighted-average cost of capital. The latter assumption appears more reasonable, particularly when the internal rate of return for the project is high, because the weighted average cost of capital is the company wide expected earnings rate Nevertheless, in many circumstances, the use of the internal rate of return method instead of the present value method does not seriously alter the ranking of projects.