I have a couple of M16s as well as an AC556K (blued 13" folder).
My take on which platform represents a better value depends upon what your plans/aspirations are.
Removing the financial aspect of the equation...the M16 is a better platform, no doubt about that. It is a better shooter, suppresses better, is more configurable/upgradeable, allows even the most mediocre of the mechanically inclined to endless tinker with different setups, has a more robust parts supply, has significant military history, etc.
That said an M16 conversion cost roughly twice what an AC556 does, so the question is for your use case is a M16 twice as nice as an AC556.
If you want a dedicated 5.56 machinegun that you will shoot a handful of times a year, don't have an interest in a bunch of conversion uppers, don't really care about suppressing it, the AC556 will serve you well as a rifle caliber machinegun. They are well designed guns, reliable, have a decent 22LR kit available, and many wear parts are interchangable with the older Mini-14s (worst case parts kits are available)
If you will only really only be happy with an M16, I would continue saving if an extra $10K assuming you can save it in a reasonable timeframe (12 to 24 months).
If it going to take more than 2 years to never...than get the AC556 and enjoy it until you can save up the extra $$$ for an M16 down the road.
Good luck with your decision.