The way you've mocked it up would work with a slitting saw. The diameter of the saw you get must account for the depth of cut and the OD of the saw arbor/holder. You have to have enough blade exposed to get your depth of cut plus a little clearance. They sell saws with the width of cut you need but you'll have to search for the right saw diameter.
Keep in mind that saws have different hole diameters. The reason this matters is because the slitting saw arbor you use must fit that saw hole fairly precisely. The most common holes are 1/2", 5/8" and 1". 3/4" is not a common arbor size, although the multi-step ones will work or you can make your own. The bigger the hole in the saw, the bigger the arbor will be and therefore, the bigger your saw OD must be in order to have enough blade area for your depth of cut. Typically, a the arbor for a 1" saw hole will require an arbor with about a 1.5" OD. Add in your 0.875" depth of cut and you're looking at a 3.5" - 4" saw diameter.
You may not be able to find a blade of the right diameter, arbor hole and thickness you need. It is possible to stack two thinner saws on the same arbor to get the width of cut you need.
Also, the rule of thumb for the number of teeth required is to have at least 3 teeth engaged in the cut at all times. For aluminum, you want a coarser saw to enable chip clearance when possible. This is not a hard and fast rule. If you have more teeth, just feed slower; the saw will still cut fine.