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Yep, This can be run on DigitalOcean happily.
As for requirements… I guess the $20/month option would be a nice good start.
Mysql likes memory, so 2GB is a good start ( and cheap ) You can always upgrade at a later date.
My guess is 25 users on a small PHP and Mysql based webapp will run on almost anything. But the $20 is a good start.