Proximity Based Voice Chat?

I really need to know if this is possible, because its a huge part of the game I’m planning on making. I need to simply take the audio from a player’s microphone, and attach the audio to the player, so that you can only hear it if your close to them. This is crazy important for the game.

Create a channel for the chat audio;
In game world, take the distance of player 1 to player 2 and normalize the vector to 1; (use normalize to range function).
Set channel volume to: 1.0 - Normalized Distance.

I would show images, but away from pc.

Can you show images for me now because its VERY important for my game @BrUnO XaVleR