FMLease or Buy Question on DF for section B

Hello , I have come across the below question for Lease to Buy practice and I am struggling to understand how they have come to DF @ 7% as 1.935 and 1.689 for years 0-1 and 2-3 respectively in Section B for Leasing Finance Option. Would you be able to clarify, please? QUESTION: A new project is being considered: The asset costs $200,000 on the first day of a new accounting period. The scrap value is $25,000 on the last day of the next accounting period. Operating inflows are $150,000 for two years. The tax rate is 33% and taxes are paid one year in arrears. The company's WACC is 10%. Tax-allowable depreciation is at 25% on a reducing balance basis with a balancing adjustment in the year of disposal. Finance options: (1) using a bank loan at a 10.5% interest rate; or (2) leasing for $92,500 a year in advance for two years (lease payments are tax allowable). Required: Determine the operational benefit of the project. Determine how the project should be financed. Hint: Prepare a separate TAD working. Decide whether the project is worthwhile. (2) Leasing Flows Time Cash flow Narrative DF @ 7% PV $ $ 0–1 (92,500) Lease payments 1.935 (178,988) 2–3 30,525 Tax relief thereon* 1.689 51,557 PV of leasing flows (127,431) Thank you in advance for you help.