1. Calculate the ROI for an investment in "RealEstate Ventures." The investment involves purchasing a commercial property for $2,500,000, generating annual rental income of $300,000, and incurring operating expenses of $100,000 per year. Additionally, the property appreciates by 7% annually over a 7-year holding period.

Assess the investment's performance based on the ROI figure and discuss the implications of property appreciation on the overall return.