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Raster with both World File and .Prj file not loading correctly

Question asked by ae.swagoner on Jun 1, 2017
Latest reply on Jun 1, 2017 by Dan_Patterson

I recieve very large geotiff files.  In order to work with them, I use a software that converts them to a  jpeg for me.  When they are done converting they have both a world file and a .prj file.

But when I load them into ArcMap they have no spatial reference.  They only way they can be projected correctly is if I go in through the catalog and change the projection.  

Any Ideas why the .prj is not even showing up?