If in deed that is a new freq for Mem (I don't know since I don't live there) then 120.025 is how it should be entered into the radio. I know my scanners, Unidens 296, etc can set the steps for 10 MHz but the proper way is adding the 5 after it. The Controllers a lot of times leave the 5 off of it. Such as MEM center over BNA will tell A/C to contact MEM center on 124.12 but in my radio it's 124.125 and you can hear them well.
I did a little experiment with a Ft Campbell Freq the other day. BNA Dep told Poison 51 (A T-38) to contact Ft. Campbell App on 269.520 so I set the steps and plugged in how the freq was given out with 269.525 in the next channel over. 269.52 come in scratchy and distorted but 269.525 come in loud 'n clear. It works the same way for VHF (Civil) air as well. Hope this helped.