I made a similar choice a couple weeks ago. I chose a 455 Varmint. I have yet to try any expensive target ammo but if you find the right cheap stuff it is impressive. I have a Nikon Prostaff Target 3-9X40AO on it and am at 1/2 your original budget.
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A true sportsman counts his achievements in proportion to the effort involved and fairness of the sport. - S. Pope