Hey there!
To start, I'm not totally sure why you want to use an external DAC so badly. If you can make a digital connection from your PC directly into your Denon receiver, that is the simplest connection setup and there is absolutely nothing wrong with the DAC in the Denon 2500 receiver. That model has high quality DAC!
But that aside, you certainly can use an external DAC if you really want to. What will come out of that external DAC is an analogue signal via a standard stereo audio cable. If you plug that cable into any of the red-and-white analogue inputs on the back of the Denon receiver, then it is just a matter of selecting that input (it'll be something like "CD", "Tape", "VCR" etc. ) and then using that "Input" button section to select "Analogue". This tells the receiver to "look" for the audio signal coming in through the red/white plugs for that particular input. "Auto" should also work. If you do this, the Denon will take that analogue signal and convert it back into digital PCM. It does this so that it can apply things like bass management, signal delays, channel trims or any DSP mode processing. After the digital processing, it converts it back to analogue again and then amplifies it and sends it to your speakers. So this entirely defeats the purpose of an external DAC!
What you'd want to use with an external DAC is that "Ext. In" setting. That setting "points" the receiver to a specific set of analogue inputs that should be labelled "Ext. In" on the back. These are basically "Pre In" connections. In other words, the "Ext. In" connections make your receiver work like just an amplifier and nothing more. If you had separates, with a pre/pro and amp, all the signal processing would be done in the pre/pro and then it would have "pre outs" that plug into the amp. The "Ext. In" plugs make your Denon receiver into an amp. No signal processing. Just the signal going straight to the amps.
So, if you're determined to use an external DAC, then that is essentially your "pre amp/processor". You take its analogue outputs, plug them into your Denon's "Ext. In" plugs, select an input, press the "Ext. In" button, and enjoy the signal as it gets sent straight through to the Denon's amps. But if you want to make use of any of the Denon's bass management or other processing, just send a digital signal straight from the computer to the Denon with nothing in between.
Hope that helps!