We may define the Euler characteristic of a topological space $X$ using singular integral homology by
$$\chi(X)=\sum_{i}(-1)^i\,\text{rank}\: H_{i}(X;\mathbb{Z}),$$
Then we have that $\chi(\mathbb{R}^n)=\chi(B^{n})=1$ since $\mathbb{R}^{n}$ and the $n$-ball $B^{n}$ are contractible and as defined $\chi$ is a homotopy invariant. Also, for the $n$-sphere $\chi(S^{n})=1+(-1)^{n}$.
On the other hand, the excision property tells us that $\chi(X)=\chi(C)+\chi(X-C)$ for any closed subset $C$ of $X$. Therefore, since $\mathbb{R}^{n}$ is homeomorphic to the interior of $B^{n}$ we have that $$\chi(\mathbb{R}^{n})=\chi(B^{n})-\chi(S^{n-1})=1-(1+(-1)^{n-1})=(-1)^{n}.$$
Which one is the right answer? Where am I going wrong?
Edit: See page 2 of Liviu I. Nicolaecu's notes on the Euler characteristic (Note that the Euler characterisric is definied there using compactly supported cohomology).
Edit: What about this? Add the point at infinity to $\mathbb{R}^{n}$, thus giving us a cell decomposition having one $0$-cell and one $n$-cell. But the one point compactification is an $n$-sphere thus having Euler characteristic $1+(-1)^{n}$. Then removing the added point leaves $(-1)^{n}$ as the Euler characteristic of $\mathbb{R}^{n}$.