Now that all of you have me obsessed with making sure I have this right and comparing apples to apples...let's begin with the constants:

Assets: $199,000
Estimated Annual Growth: 6%
Term: 7 years (until they start withdrawing)
Fees: 2.34% (the actual fees of the annuity)

American Express results:
Total Fees: $38,421.95
Foregone Earnings: $7,281.09
Total Fees and Foregone earnings: $45,703.04
Total Assets after 7 years subtracting fees: $253,519.39

Vanguard results (.3% fees)
Total Fees: $4,837.59
Foregone Earnings: $889.12
Total Fees and Foregone earnings: $5,726.70
Forgone earnings on $16,000 surrender charge: $24,058
Total Assets after 7 years subtracting fees: $269,437.63

Now the following is the calculation for standard Present Value:


FV
PV = -------------
n
(1 + r)

Now if I understand the NPV correctly it would equate to the PV-I where I respresents the Initial Investment...

NPV for the Vanguard is $183,000...got it.

NPV for Amex more complex as it is in the annuity. Here's where I'm struggling...If I understand correctly using numbers from above, the FV of the Amex example is $253,519, So using the above equation...

PV = $168,604

Meaning in order to get $253,519 in 7 years at 6% interest, I should be starting off with no more that $168,604...but...

NPV = PV - I
NPV = $168,604 - $199,000
NPV = -$30,395

Since NPV is a negative number, meaning with this investment I'm starting with $199,000 or $30k more than I should I should pull out...have I got this right now? Whew...