The allowed values are eigenvalues of $M$ i.e. numbers $\lambda$ such that there exists a nonzero vector $\vec v$ (called the eigenvector) such that
$$ M\cdot \vec v = \lambda \vec v $$
One may shift both terms to the left hand side to rewrite it as
$$ (M - \lambda\cdot {\bf 1}) \cdot \vec v = 0 $$
Because the rows may be combined by coefficients in $\vec v$ to get zeroes, they must be linearly dependent. Consequently, it must be true that
$$ \det (M - \lambda\cdot {\bf 1}) = 0.$$
This equation is known as the characteristic equation. If you know how to compute the determinant, you may easily see that the characteristic equation (with the "characteristic polynomial" on one side) is
$$ -\lambda^3 +7 \lambda^2-14\lambda+8 = 0.$$
Cubic equations may be solved by Cardano's formula. However, it's easier to guess. Indeed, $1,2,4$ are the three solutions as you should verify.
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