Actually the Shahab 3 which is what they have technically will reach Israel; however, hitting Israel is something different and more difficult. Israel is just inside the maximum range of the Shahab 3 but at that distance the likelihood they would hit any intended targets is laughable.

Israel however, can push a button from a desk in an air conditioned office and annihilate Iran without a doubt.

I'm not sure money was the issue...Iran is in much worse shape than they would like the world to know. This exercises was in response to Israels war games and flyover exercises. Iran did everything they could to make a point which ended up being a joke.