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A manufacturing company is considering the purchase of a new machinery to increase its production capacity. The company has identified a new machine that costs

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A manufacturing company is considering the purchase of a new machinery to increase its production capacity. The company has identified a new machine that costs $500,000 and is expected to increase production by 20%. The company expects to sell the additional products for $600,000, resulting in a net profit of $100,000. The company can finance the purchase through a bank loan with a interest rate of 5% over a five year term. What is the total interest expense for the bank loan over the five year term?
A. $100,000
B. $125,000
C. $150,000
D. $175,000
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