Xiao bought a new tea set for 1000 CNY (Chinese yuan) and insured all their home assets on an actual cash value basis. The set was destroyed during a huge flood four years later. The property's value had depreciated by 40 percent at the time of loss. Because of 10 percent inflation, all the prices increase in this range, including prices of similar tea sets. Ignoring any deductibles, how much will Xiao collect from her insurer? Explain your answer.