Facebook Inc. has the following projected financials:

Item	Projected Amount ($)
Revenue	80,000,000
Variable Costs	48,000,000
Fixed Costs	20,000,000
Capital Expenditure	10,000,000
Depreciation	2,000,000

Requirements:

1. Prepare a Pro Forma Income Statement.
2. Calculate the Net Operating Profit After Tax (NOPAT).
3. Determine the Free Cash Flow (FCF).
4. Analyze the effect of a 10% increase in variable costs on FCF.
5. Discuss the implications of capital expenditure on cash flow management.