Currently popular areas of RFID (Radio Frequency Identification) application include the domain of ubiquitous city (u-city), which would require very high initial infrastructure cost. This study proposes a COO (Cost of Ownership) model for RFID Logistics System applicable to u-city in order to support the decision making process of infrastructure construction. We apply the proposed model to a case of RFID logistics system by establishing potential scenarios. The expected profit from the construction of RFID logistics system is evaluated for each scenario. We also conduct a sensitivity analysis to consider the effect of various parameter settings. This study is expected to help companies in selecting the most beneficial and most profitable RFID logistics system.